Reference no: EM132574911

Problem 1: 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:

Data used in budgeting:

                                       Fixed element                            Variable element

                                        per month                        per client-visit

Revenue                            -                               $33.60

Personnel expenses          $22,100                           $8.70

Medical supplies                  1,100                            6.60

Occupancy expenses            5,600                        1.60

Administrative expenses          3,700                          0.40

Total expenses                     $32,500                    $17.30

Actual results for January:

Revenue $93,408

Personnel expenses 46,251

Medical supplies 19,348

Occupancy expenses 9,508

Administrative expenses 4,772

The activity variance for personnel expenses in January would be closest to:

$661 U

$261 U

$261 F

$661 F

Problem 2: The activity variance for administrative expenses in January would be closest to:

$12 F

$8 F

$12 U

$8 U

Problem 3: The activity variance for net operating income in January would be closest to:

$2,019 U

$2,019 F

$489 F

$489 U