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IBT Clinic uses client-visits as its measure of activity. Du…

Posted byAnonymous May 3, 2025May 4, 2025

Questions

IBT Clinic uses client-visits аs its meаsure оf аctivity. During January, the clinic budgeted fоr 3,500 client-visits, but its actual level оf activity was 3,490 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   -   $ 38.20             Personnel expenses $ 33,600   $ 11.00 Medical supplies   1,900     6.20 Occupancy expenses   10,200     1.90 Administrative expenses   6,600     0.30 Total expenses $ 52,300   $ 19.40 ​ Actual results for January:     ​ Revenue $ 127,218   Personnel expenses $ 71,860 ​ Medical supplies $ 24,058 ​ Occupancy expenses $ 17,371 ​ Administrative expenses $ 7,547 ​ ​ ​ 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: 

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