Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits, but its actual level of activity was 4,580 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 Fixed element per month $ 0 $ 28,600 Variable element per client-visit $ 36.60 $ 12.60 1,500 6.60 10,500 1.00 7,600 0.20 $ 48,200 $ 20.40 $ 130,000 $ 70,020 $ 21,012 $ 13,190 $ 7,440 Occupancy expenses Administrative expenses The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: Multiple Choice О $7,658 F О $7,982 U $7,658 U $7,982 F

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,600 client-visits, but its actual level of activity was 4,580 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 Fixed element per month $ 0 $ 28,600 Variable element per client-visit $ 36.60 $ 12.60 1,500 6.60 10,500 1.00 7,600 0.20 $ 48,200 $ 20.40 $ 130,000 $ 70,020 $ 21,012 $ 13,190 $ 7,440 Occupancy expenses Administrative expenses The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: Multiple Choice О $7,658 F О $7,982 U $7,658 U $7,982 F

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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