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Otrada [13]
3 years ago
5

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,700 client-visits, but

its actual level of activity was 3,690 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue - $ 36.20 Personnel expenses $ 30,300 $ 11.20 Medical supplies 1,600 6.60 Occupancy expenses 8,400 2.70 Administrative expenses 6,700 0.40 Total expenses $ 47,000 $ 20.90 Actual results for November: Revenue $ 133,763 Personnel expenses $ 71,596 Medical supplies $ 26,768 Occupancy expenses $ 17,875 Administrative expenses $ 7,951 The activity variance for personnel expenses in November would be closest to:
Business
1 answer:
Viefleur [7K]3 years ago
3 0

Answer:

The correct answer is $814 Unfavorable because actual medical supplies is more than standard.

Explanation:

Actual Medical Supplies                                         $26,768

Standard Medical Supplies for Actual Activity            $25,954

(6.60*3,690+1,600)

Medical Supplies Spending Variance                          814 Unfavorable

Therefore, The correct answer is $814 Unfavorable because actual medical supplies is more than standard.

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