Glassing Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for...
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Accounting
Glassing Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 4,160 client-visits, but its actual level of activity was 4,120 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
$
22.10
Personnel expenses
$
21,850
$
5.70
Medical supplies
1,865
4.50
Occupancy expenses
4,210
2.10
Administrative expenses
3,035
1.10
Total expenses
$
30,960
$
13.40
The activity variance for net operating income in September would be closest to:
a. $348 U
b. $3,508 U
c. $3,508 F
d. $348 F
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