Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,850 client-visits, but its actual level of activity was 3,840 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

	Fixed element per month			Variable element per client-visit
Revenue		-		$	36.50
Personnel expenses	$	30,600		$	11.50
Medical supplies		1,750			6.90
Occupancy expenses		8,700			3.00
Administrative expenses		7,000			0.30
Total expenses	$	48,050		$	21.70

Actual results for November:

Revenue	$	140,352
Personnel expenses	$	74,725
Medical supplies	$	29,069
Occupancy expenses	$	19,729
Administrative expenses	$	7,920

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

• $115 F

• $115 U

• $150 F

• $150 U

Answer 1