QUESTION 27

Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Use the following data for questions 27-30

Data used in budgeting:

Fixed elementVariable element

per monthper client-visit

Revenue-$47.10

Personnel expenses$22,700$16.90

Medical supplies1,6006.50

Occupancy expenses6,9001.50

Administrative expenses3,4000.40

Total expenses$34,600$25.30

Actual results for July:

Revenue$101,491

Personnel expenses55,699

Medical supplies15,895

Occupancy expenses9,785

Administrative expenses4,424

The revenue variance for July would be closest to:

$2,581 F

$2,110 U

$2,110 F

$2,581 U

3.33 points

QUESTION 28

Use the information given in question #27.

The spending variance for medical supplies in July would be closest to:

$580 U

$645 U

$645 F

$580 F

3.33 points

QUESTION 29

Use the information given in question #27.

The spending variance for occupancy expenses in July would be closest to:

$265 F

$280 U

$280 F

$265 U

3.33 points

QUESTION 30

Use the information given in question #27.

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for July would be closest to:

$4,508 F

$4,290 U

$4,290 F

$4,508 U