Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,350 client-visits, but its actual level of activity was 3,260 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per Variable element per client-visit Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses month $ 0 $ 35,300 1,300 8,300 5,300 $ 50,200 The activity variance for net operating income in July would be closest to: Multiple Choice О $1,032 F О $1,782 F О $1,032 U О $1,782 U $ 39.30 $ 10.50 7.30 1.30 0.40 $ 19.50
Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,350 client-visits, but its actual level of activity was 3,260 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per Variable element per client-visit Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses month $ 0 $ 35,300 1,300 8,300 5,300 $ 50,200 The activity variance for net operating income in July would be closest to: Multiple Choice О $1,032 F О $1,782 F О $1,032 U О $1,782 U $ 39.30 $ 10.50 7.30 1.30 0.40 $ 19.50
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 3,350 client-visits, but its actual level of
activity was 3,260 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per Variable element
per client-visit
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
month
$ 0
$ 35,300
1,300
8,300
5,300
$ 50,200
The activity variance for net operating income in July would be closest to:
Multiple Choice
О
$1,032 F
О
$1,782 F
О
$1,032 U
$1,782 U
$ 39.30
$ 10.50
7.30
1.30
0.40
$ 19.50
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