Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,050 client-visits, but its actual level of activity was 3,970

Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,050 client-visits, but its actual level of activity was 3,970 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:

Fixed element per month Variable element per client-visit
Revenue $40.70
Personnel expenses $36,700 $11.90
Medical supplies 2,700 8.70
Occupancy expenses 9,700 2.70
Administrative expenses 6,700 .90
Total expenses

$55,800

$24.20

The activity variance for net operating income in August would be closest to:

$1,320 U

$1,320 F

$570 U

$570 F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Funding And Finance

Authors: Bob Stewart

2nd Edition

041583984X, 978-0415839846

More Books

Students also viewed these Finance questions

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago