Question
Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,350 client-visits, but its actual level of activity was 4,400
Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,350 client-visits, but its actual level of activity was 4,400 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 $41.30 Personnel expenses $37,300 $12.50 Medical supplies 3,300 9.30 Occupancy expenses 8,500 3.30 Administrative expenses 7,300 .60 Total expenses $56,400 $25.70 The activity variance for net operating income in August would be closest to:
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