Buonocore Clinic uses client-visits as its measure of activity. During August, t
ID: 2498582 • Letter: B
Question
Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue - $46.20
Personnel expenses $31,800 $15.60
Medical supplies 1,800 6.10
Occupancy expenses 7,600 1.90
Administrative expenses 5,900 0.40
Total expenses $47,100 $24.00
Actual results for August:
Revenue $132,124
Personnel expenses $74,232
Medical supplies $18,697
Occupancy expenses $13,213
Administrative expenses $7,058
The activity variance for personnel expenses in August would be closest to:
$468 F
$468 U
$1,248 F
$1,248 U
$468 F
$468 U
$1,248 F
$1,248 U
Explanation / Answer
$1,248 F
Working:
Budgeted Unit A 2800 Fixed Cost B 31,800 Variable Cost C=A*15.60 43,680 Total Budgeted Cost D=B+C 75,480 Total Actual Cost E 74,232 Variance D-E 1,248Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.