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BrownieMan123
16.04.2020 •
Business
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 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 - $ 35.80 Personnel expenses $ 29,900 $ 10.80 Medical supplies 1,400 6.20 Occupancy expenses 8,000 2.30 Administrative expenses 6,300 0.40 Total expenses $ 45,600 $ 19.70 Actual results for November: Revenue $ 125,117 Personnel expenses $ 67,564 Medical supplies $ 23,840 Occupancy expenses $ 15,543 Administrative expenses $ 7,479 The activity variance for personnel expenses in November would be closest to:
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Ответ:
The correct answer is $108.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the activity variance by using following formula:
Activity variance = Planning budget - Flexible budget
Where, Planning budget = $29,900 + ( 3,500 × $10.80)
= $67,700
And Flexible budget = $29,900 + ( 3,490 × $10.80)
= $67,592
By putting the value we get,
Activity variance = $67,700 - $67,592
= $108
Ответ:
me
Explanation: