5) Bartosiewicz Clinic uses client-visits as its measure of activity. During
January, the clinic budgeted for 3,400 client-visits, but its actual level of
activity was 3,380 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
per month client-visit
Revenue
$35.40
Personnel expenses
$27,400
$11.40
Medical supplies
1,400
5.40
Occupancy expenses
10,400
1.00
Administrative expenses
6,400
0.50
Total expenses
$45,600
$18.30
Actual results for January:
Revenue
$124,690
Personnel expenses
$ 72,040
Medical supplies
$ 22,708
Occupancy expenses
$ 14,640
Administrative expenses
$ 8,145
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 January
would be closest to:
$5,041 F
$5,383 U
$5,041 U
$5,383 F
