Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,030 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per monthVariable element per client-visitRevenue - $44.70 Personnel expenses$35,900 $13.30Medical supplies 1,600 5.30Occupancy expenses 11,600 2.20Administrative expenses 5,400 0.20Total expenses$54,500 $21.00 Actual results for December: Revenue$178,885 Personnel expenses$88,515Medical supplies$22,515Occupancy expenses$19,960Administrative expenses$6,290 The activity variance for administrative expenses in December would be closest to:

Solution: activity variance for administrative expenses = administrative expenses as per planned…

Answered: ber, the clinic budgeted for 4,100…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,030 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

	Fixed element per month	Variable element per client-visit
Revenue		-	$	44.70

Personnel expenses	$	35,900	$	13.30
Medical supplies		1,600		5.30
Occupancy expenses		11,600		2.20
Administrative expenses		5,400		0.20
Total expenses	$	54,500	$	21.00