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Question 16

Gum Professionals uses client-visits as its measure of activity. During September, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 4,200 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Monthly

Variable

Fixed Cost

Unit Cost

Revenue

$ 75.00

Personnel expenses

$ 25,000

16.25

Medical expenses

900

5.00

Occupancy expenses

12,000

3.50

Administrative expenses

7,500

1.00

Total expenses

$ 45,400

$ 25.75

Actual results for September:

Revenue

$ 292,000

Personnel expenses

$ 93,500

Medical expenses

$ 19,000

Occupancy expenses

$ 24,000

Administrative expenses

$ 12,000

The activity variance for net operating income in September would be _______.

You must enter your answer in the following format for a favorable variance: $x,xxx F

You must enter your answer in the following format for an unfavorable variance: $x,xxx U


 
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