Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for...
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Accounting
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,100 client-visits, but its actual level of activity was 5,120 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 element per month
Variable element per client-visit
Revenue
$ 0
$ 37.10
Personnel expenses
$ 29,100
$ 13.10
Medical supplies
2,000
7.10
Occupancy expenses
11,000
1.00
Administrative expenses
6,600
0.20
Total expenses
$ 48,700
$ 21.40
Actual results for January:
Revenue
$ 150,100
Personnel expenses
$ 70,070
Medical supplies
$ 20,222
Occupancy expenses
$ 14,080
Administrative expenses
$ 7,560
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 January would be closest to:
rev: 06_30_2020_QC_CS-208650
Multiple Choice
$6,484 U
$6,484 F
$6,798 U
$6,798 F
Answer & Explanation
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