ttps// hapter 9. Quiz Help Save & Exlt TB MC Qu. 9-241 Guareno Clinic uses clien

Question

ttps// hapter 9. Quiz Help Save & Exlt TB MC Qu. 9-241 Guareno Clinic uses client-visits as its measure... 8 Guareno Clinic uses cient-visits as was 3,760 client-visits. The clinic its measure of activity. During December, the cinic budgeted for 3,800 clent-visits, but its actual level of activity has provided the following data concerning the formulas used in its budgeting and its actual results for December Data used in budgeting: 0053:48 element per Variable element nth Revenue S 44.40 s 35, 60o s13.00 4.70 1.90 o.20 1,300 11,300 5,100 53,300 Medical supplies Occupancy expenses Administrative S 19.80 Actual results for December o2

Explanation / Answer

Answer is $ 8 U

Explanation:

Std Admin expense for actual activity (3760 clients @ 0.20 +5100): $ 5852

Std Admin expense for Planned Activity (3800 cleints @0.20+5100): $5860

Activity variance = Std Admin expense for Actual activity - Std admin expense for planned activity

Activity variance = 5852- 5860 = $8 U

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