Federick Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for...
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Accounting
Federick Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 3,040 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
Fixed element per month
Variable element per client-visit
Revenue
$
51.20
Personnel expenses
$
36,600
$
18.10
Medical supplies
1,000
6.80
Occupancy expenses
12,100
1.70
Administrative expenses
4,800
0.20
Total expenses
$
54,500
$
26.80
Actual results for October:
Revenue
$
158,578
Personnel expenses
$
87,314
Medical supplies
$
21,452
Occupancy expenses
$
18,048
Administrative expenses
$
5,248
The activity variance for administrative expenses in October would be closest to:
$152 F
$8 U
$152 U
$8 F
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