Question
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,200 client-visits, but its actual level of activity was 4,270
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,200 client-visits, but its actual level of activity was 4,270 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per monthVariable element per client-visitRevenue-$41.00Personnel expenses$37,000$12.20Medical supplies3,0009.00Occupancy expenses8,2003.00Administrative expenses7,0000.30Total expenses$55,200$24.50
The activity variance for administrative expenses in July would be closest to:
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