Reference no: EM132758344

Question - Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,480 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 per month Variable element per client-visit

Revenue - $35.50

Personnel expenses $27,500 $11.50

Medical supplies 1,500 5.50

Occupancy expenses 10,500 1.00

Administrative expenses 6,500 0.10

Total expenses $46,000 $18.10

Actual results for January:

Revenue $124,700

Personnel expenses $72,050

Medical supplies $22,710

Occupancy expenses $14,650

Administrative expenses $8,155

Find 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?