Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,000...

 

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Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,000 client visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January, Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for January: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Fixed Variable element element per per month client-visit $35.00 $27,000 1,000 10,000 6,000 $44,000 $124,650 $ 72,000 $ 22,700 $ 14,600 $ 8,105 $11.00 5.00 1.00 0.10 $17.10 What would be the activity variance for net operating income in January? Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,000 client visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January, Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for January: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Fixed Variable element element per per month client-visit $35.00 $27,000 1,000 10,000 6,000 $44,000 $124,650 $ 72,000 $ 22,700 $ 14,600 $ 8,105 $11.00 5.00 1.00 0.10 $17.10 What would be the activity variance for net operating income in January?

Answer rating: 100% (QA)

To calculate the activity variance for net operating income we need to compare the budgeted net oper... View the full answer