Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits, but its actual level of activity was 4,580 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 Occupancy expenses Administrative expenses Fixed element Variable element per month $0 $ 28,600 1,500 10,500 7,600 $ 48,200 $ 130,000 $ 70,020 $ 21,012 $ 13,190 $ 7,440 per client-visit $36.60 $ 12.60 6.60 1.00 0.20 $ 20.40 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:
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits, but its actual level of activity was 4,580 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 Occupancy expenses Administrative expenses Fixed element Variable element per month $0 $ 28,600 1,500 10,500 7,600 $ 48,200 $ 130,000 $ 70,020 $ 21,012 $ 13,190 $ 7,440 per client-visit $36.60 $ 12.60 6.60 1.00 0.20 $ 20.40 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:
Chapter1: Financial Statements And Business Decisions
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i.3
Transcribed Image Text:Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits, but its actual level of activity was
4,580 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
Occupancy expenses
Administrative expenses
Fixed element Variable element
per month
$0
$ 28,600
1,500
10,500
7,600
$ 48,200
$ 130,000
$ 70,020
$ 21,012
$ 13,190
$ 7,440
per client-visit
$36.60
$ 12.60
6.60
1.00
0.20
$ 20.40
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:
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