Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,700 client-visits, but its actual level of activity was 4,680 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December Data used in budgeting: Fixed element per month Variable element per client visit Revenue $36.70 Personnel expenses $28,700 $12.70 Medical supplies 1,600 6.70 Occupancy expenses 10,600 1.00 Administrative expenses 7,700 0.30 Total expenses $48,600 $20.70 Actual results for December: Revenue $131,000 Personnel expenses $70,030 Medical supplies $21,014 Occupancy expenses $13,200 Administrative expenses $7,450 The activity variance for net operating income in December would be closest to:
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
