Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,300 client-visits, but its actual level of activity was 5,330 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: Revenue Personnel expenses Medical supplies $ 29,300 1,600 Occupancy expenses 10,300 Administrative expenses 6,800 $ 48,000 Fixed element per month Variable element per client-visit $0 $ 37.30 Total expenses Actual results for January: $ 150,300 $ 13.30 7.30 1.00 0.40 $ 22.00 Revenue Personnel expenses $70,090 Medical supplies $ 20,226 Occupancy expenses $14,100 Administrative expenses $7,580 The activity variance for net operating income in January would be closest to: a. $459 F b. $306 U c. $459 U d. $306 F
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,300 client-visits, but its actual level of activity was 5,330 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: Revenue Personnel expenses Medical supplies $ 29,300 1,600 Occupancy expenses 10,300 Administrative expenses 6,800 $ 48,000 Fixed element per month Variable element per client-visit $0 $ 37.30 Total expenses Actual results for January: $ 150,300 $ 13.30 7.30 1.00 0.40 $ 22.00 Revenue Personnel expenses $70,090 Medical supplies $ 20,226 Occupancy expenses $14,100 Administrative expenses $7,580 The activity variance for net operating income in January would be closest to: a. $459 F b. $306 U c. $459 U d. $306 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 5,300 client-visits, but its actual
level of activity was 5,330 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:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
Actual results for January:
Revenue
Personnel expenses
Medical supplies
Fixed element per month Variable element per client-visit
$0
$ 37.30
$ 29,300
$ 13.30
b. $306 U
c. $459 U
d. $306 F
1,600
10,300
6,800
$ 48,000
7.30
1.00
0.40
$ 22.00
$ 150,300
$ 70,090
$ 20,226
Occupancy expenses
$14,100
Administrative expenses
$7,580
The activity variance for net operating income in January would be closest to:
a. $459 F
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