Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Students also viewed these Accounting questions

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago