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: Fixed element per monthVariable element per client-visitRevenue$ 0$ 43.70Personnel expenses$ 26,100$ 12.10Medical supplies1,0006.30Occupancy expenses6,8001.60Administrative expenses3,0000.20Total expenses$ 36,900$ 20.20 The activity variance for personnel expenses in July would be closest to:

The planning budget in this case is the expected client visits or the budgeted footfall and the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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:

	Fixed element per month	Variable element per client-visit
Revenue	$ 0	$ 43.70
Personnel expenses	$ 26,100	$ 12.10
Medical supplies	1,000	6.30
Occupancy expenses	6,800	1.60
Administrative expenses	3,000	0.20
Total expenses	$ 36,900	$ 20.20