Question
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,250 client-visits, but its actual level of activity was 4,300
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 4,250 client-visits, but its actual level of activity was 4,300 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-$41.10
Personnel expenses$37,100
$12.30 Medical supplies3,1009.10Occupancy expenses8,3003.10Administrative expenses7,1000.40Total expenses$55,600$24.90
The activity variance for administrative expenses in July would be closest to:
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