QUESTION 24

Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed elementVariable element

per monthper client-visit

Revenue-$33.60

Personnel expenses$22,100$8.70

Medical supplies1,1006.60

Occupancy expenses5,6001.60

Administrative expenses3,7000.40

Total expenses$32,500$17.30

Actual results for January:

Revenue$93,408

Personnel expenses46,251

Medical supplies19,348

Occupancy expenses9,508

Administrative expenses4,772

The activity variance for personnel expenses in January would be closest to:

$661 U

$261 U

$261 F

$661 F

QUESTION 25

Use the budget information given in question #24.

The activity variance for administrative expenses in January would be closest to:

$12 F

$8 F

$12 U

$8 U

QUESTION 26

Use the information given in question #24.

The activity variance for net operating income in January would be closest to:

$2,019 U

$2,019 F

$489 F

$489 U