Reference no: EM132574912

Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

                                                     Fixed element                        Variable element

                                                       per month                                 per client-visit

Revenue                                         -                                         $47.10

Personnel expenses                        $22,700                                     $16.90

Medical supplies                              1,600                                          6.50

Occupancy expenses                        6,900                                          1.50

Administrative expenses                     3,400                                            0.40

Total expenses                                  $34,600                                         $25.30

Actual results for July:

Revenue $101,491

Personnel expenses 55,699

Medical supplies 15,895

Occupancy expenses 9,785

Administrative expenses 4,424

Problem 1: The revenue variance for July would be closest to:

$2,581 F

$2,110 U

$2,110 F

$2,581 U

Problem 2: The spending variance for medical supplies in July would be closest to:

$580 U

$645 U

$645 F

$580 F

Problem 3: The spending variance for occupancy expenses in July would be closest to:

$265 F

$280 U

$280 F

$265 U

Problem 4: 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 July would be closest to:

$4,508 F

$4,290 U

$4,290 F

$4,508 U