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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
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: Revenue Personnel expenses Fixed element per month $ 0 $ 36,300 Variable element per client-visit $ 40.30 Medical supplies Occupancy expenses Administrative expenses Total expenses 2,300 9,300 6,300 $ 54,200 The activity variance for net operating income in July would be closest to: Multiple Choice $885 F $885 U $135 F $135 U $ 11.50 8.30 2.30 0.50 $ 22.60
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