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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 Variable element element per per month client-visit Revenue $43.70 Personnel expenses Medical supplie:s Occupancy expenses Administrative expenses Total expenses $26,100 $12.10 6.30 1.60 0.20 $36,900 $20.20 1,000 6, 800 3,000 The activity variance for net operating income in July would be closest to: Multiple Choice $235 F $235 U $2825 F $2.825 U
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