Question
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:
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