Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 element per month | Variable element per client-visit | |
---|---|---|
Revenue | $ 0 | $ 43.70 |
Personnel expenses | $ 26,100 | $ 12.10 |
Medical supplies | 1,000 | 6.30 |
Occupancy expenses | 6,800 | 1.60 |
Administrative expenses | 3,000 | 0.20 |
Total expenses | $ 36,900 | $ 20.20 |
The activity variance for administrative expenses in July would be closest to:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started