05 Jun Question the 4,350 (my fixed) by $41
Question
the 4,350 (my fixed) by $41.30 and did the 4,400 x $41.30 and so forth, I keep coming up with a very high number. Not sure what i am doing wrong. I need a step by step play. I am probably thinking to much into this problem. Accounting is very difficult for me. Gourley Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 4,350 client-visits, but its actual level of activity was 4,400 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue — $41.30 Personnel expenses $37,300 $12.50 Medical supplies 3,300 9.30 Occupancy expenses 8,500 3.30 Administrative expenses 7,300 .60 Total expenses $56,400 $25.70 Activity variance for net operating income in August would be closest to what? Need step by step on how to work this. Thanks.
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