Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:

Fixed element per month Variable element per client-visit

Revenue - $ 43.70

Personnel expenses $ 26,100 $ 12.10

Medical supplies 1,000 6.30

Occupancy expenses 6,800 1.60

Administrative expenses 3,000 0.20

Total expenses $ 36,900 $ 20.20

The activity variance for net operating income in July would be closest to:

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

GAO Financial Audit Manual Volume 2 Updated March 2021

Authors: United States Government GAO

2021 Edition

B091WM9DZW, 979-8733082875

More Books

Students also viewed these Accounting questions

Question

5. Identify three characteristics of the dialectical approach.

Answered: 1 week ago

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago