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Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320
Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:
Fixed element per month | Variable element per client-visit | |||||
Revenue | $ | 44.60 | ||||
Personnel expenses | $ | 23,200 | $ | 15.10 | ||
Medical supplies | 900 | 7.40 | ||||
Occupancy expenses | 6,500 | 2.00 | ||||
Administrative expenses | 4,000 | 0.20 | ||||
Total expenses | $ | 34,600 | $ | 24.70 | ||
Actual results for July:
Revenue | $ | 100,902 | |
Personnel expenses | $ | 60,922 | |
Medical supplies | $ | 18,648 | |
Occupancy expenses | $ | 11,290 | |
Administrative expenses | $ | 4,594 | |
The revenue variance for July would be closest to:
$2,570 F
$1,678 U
$1,678 F
$2,570 U
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