Question
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
| Fixed element per month | Variable element per client-visit |
Revenue | $ 0 | $ 45.20 |
Personnel expenses | $ 34,300 | $ 13.30 |
Medical supplies | 1,600 | 5.40 |
Occupancy expenses | 10,000 | 1.80 |
Administrative expenses | 3,800 | 0.20 |
Total expenses | $ 49,700 | $ 20.70 |
Actual results for December:
Revenue | $ 108,650 |
Personnel expenses | $ 65,755 |
Medical supplies | $ 14,380 |
Occupancy expenses | $ 14,000 |
Administrative expenses | $ 4,210 |
The activity variance for administrative expenses in December would be closest to:
(Course LO 9)
Question 10 options:
$90 U | |
$10 U | |
$10 F | |
$90 F |
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