Hello. Can you please help me on these and show me the explanation, thank you :)
ID: 2389023 • Letter: H
Question
Hello. Can you please help me on these and show me the explanation, thank you :)
Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
The activity variance for net operating income in January would be closest to:
a. $2,019 U b. $2,019 F c. $489 F d. $489 U
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Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
The total overhead cost at an activity level of 7,700 patient-visits per month should be:
a. $129,550 b. $121,720 c. $129,100 d. $137,830
Werber Clinic uses client - visits as its measure of activity. During January, the clinic budgeted for 2,700 client - visits, but its actual level of activity was 2,730 client - visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: The total overhead cost at an activity level of 7,700 patient - visits per month should be: a. $129,550 b. $121,720 c. $129,100 d. $137,830 The activity variance for net operating income in January would be closest to: a. $2,019 U b. $2,019 F c. $489 F d. $489 UExplanation / Answer
(33.60-17.30) *(2,730-2,700)= 489F C) 121,720/6,800 * 7,700= 137,830 D)
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