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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
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