Question
Kaylar Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900
Kaylar Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Fixed Element per Month Variable Element per Month
Revenue .. $0 $37.20
Personal Expenses. $27600 $11.30
Medical Expenses.. $1500 $6.80
Occupancy Expenses.... $6200 $1.70
Administrative Expenses... $3600 $0.30
Actual results for September:
Revenue .. $105010
Personal Expenses. $61020
Medical Expenses.. $22120
Occupancy Expenses.... $10930
Administrative Expenses... $4570
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Compute Kaylar's total expense spending variance. State answer as a positive
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Compute Kaylar's total expense activity variance. State answer as a positive.
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Compute Kaylar's total revenue activity variance. State answer as a positive.
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What was the total net operating income activity variance for Kaylars? State answer as a positive.
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