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 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 month | Variable element per client-visit | ||||
Revenue | - | $ | 41.00 | ||
Personnel expenses | $ | 37,000 | $ | 12.20 | |
Medical supplies | 3,000 | 9.00 | |||
Occupancy expenses | 8,200 | 3.00 | |||
Administrative expenses | 7,000 | 0.30 | |||
Total expenses | $ | 55,200 | $ | 24.50 | |
The activity variance for net operating income 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