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 3,800 client-visits, but its actual level of activity was 3,780 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
$ 35.80
Personnel expenses
$ 27,800
$ 11.80
Medical supplies
1,800
5.80
Occupancy expenses
10,800
1.00
Administrative expenses
6,800
0.40
Total expenses
$ 47,200
$ 19.00
Actual results for January:
Revenue
$ 124,730
Personnel expenses
$ 71,000
Medical supplies
$ 22,716
Occupancy expenses
$ 14,680
Administrative expenses
$ 8,185
The activity variance for net operating income in January would be closest to:
Answer & Explanation
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