Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Revenue Personnel expenses. Medical supplies Occupancy expenses Administrative expenses Total expenses Multiple Choice O The activity variance for net operating income in July would be closest to: O O O $235 F $235 U $2.825 F Fixed Variable element element per per month client-visit $43.70 $2,825 U $26,100 1,000 6,800 3,000 $36,900 $12.10 6.30 1.60 0.20 $20.20
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Revenue Personnel expenses. Medical supplies Occupancy expenses Administrative expenses Total expenses Multiple Choice O The activity variance for net operating income in July would be closest to: O O O $235 F $235 U $2.825 F Fixed Variable element element per per month client-visit $43.70 $2,825 U $26,100 1,000 6,800 3,000 $36,900 $12.10 6.30 1.60 0.20 $20.20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 client-visits. The clinic has provided the
following data concerning the formulas to be used in its budgeting:
Revenue
Personnel expenses.
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
Multiple Choice
O
The activity variance for net operating income in July would be closest to:
O
O
O
$235 F
$235 U
$2.825 F
Fixed Variable
element element per
per month client-visit
$43.70
$2,825 U
$26,100
1,000
6,800
3,000
$36,900
$12.10
6.30
1.60
0.20
$20.20
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