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Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,150
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,200 client-visits, but its actual level of activity was 3,150 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 $39.00 Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $35,000 1,000 8,000 5,000 $49,000 $10.20 7.00 1.00 0.10 $18.30 The activity variance for net operating income in July would be closest to: Multiple Choice O $285 U $1,035 F O O O $1,035 U O $285 F
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