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ra1l [238]
3 years ago
15

Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its a

ctual 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 - $ 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 The activity variance for personnel expenses in July would be closest to: Multiple Choice $901 F $901 U $121 F $121 U
Business
1 answer:
lapo4ka [179]3 years ago
5 0

Answer:

The correct answer is D

Explanation:

Giving the following information:

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.

Personnel expenses:

Fixed= $26,100

Variable= $ 12.10

Estimated cost= 26,100 + 12.1*2,000= $50,300

Actual cost= 26,100 + 12.1*2,010= $50,421

Total variance= 121 unfavorable

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