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Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,850 client-visits, but its actual level of activity was 3,800
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,850 client-visits, but its actual level of activity was 3,800 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 | - | $ | 40.30 | ||
Personnel expenses | $ | 36,300 | $ | 11.50 | |
Medical supplies | 2,300 | 8.30 | |||
Occupancy expenses | 9,300 | 2.30 | |||
Administrative expenses | 6,300 | 0.50 | |||
Total expenses | $ | 54,200 | $ | 22.60 | |
The activity variance for administrative expenses in July would be closest to:
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