Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help me solve 2 multiple choice thanks If the actual level of activity is 4% more than planned, then the costs in the static budget

help me solve 2 multiple choice thanks image text in transcribed
image text in transcribed
If the actual level of activity is 4% more than planned, then the costs in the static budget should be increased by 4% before comparing them to actual costs. True False Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per month Variable element per client-visit $35.40 Revenue $29,500 1,200 Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses 7,600 5.900 $44,200 $10.40 5.80 1.90 .30 $18.40 Actual results for November: Revenue $116,656 Personnel expenses Medical supplies Occupancy expenses Administrative expenses $63,686 $21,072 $13,371 $6,677 The spending variance for medical supplies in November would be closest to: $790U $732 U $790 F $732F

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

Recommended Textbook for

Financial And Managerial Accounting The Basis For Business Decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

19th Edition

1260247937, 978-1260247930

More Books

Students also viewed these Accounting questions