Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 client-visits, but its actual level of activity was 2,010 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 - $ 43.70 Personnel expenses $ 26,100 $ 12.10 Medical supplies 1,000 6.30 Occupancy expenses 6,800 1.60 Administrative expenses 3,000 0.20 Total expenses $ 36,900 $ 20.20 The activity variance for personnel expenses in July would be closest to:

Respuesta :

Answer:

$121 unfavorable

Explanation:

The computation of the activity variance is shown below:

Activity variance = Planning budget amount - flexible budget amount

where,

Planning Budget is

= $26,100 + $12.10 × 2000

= $50,300

And,

Flexible Budget is

= $26,100 + $12.10  × 2010

= $50,421

So, the activity variance for personnel expenses is

= $50,300 - $50,421

= $121 unfavorable