Lizana Clinic_Variance Analysis
Lizana Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,800 client-visits, but its actual level of activity was 4,780 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December
Data used in budgeting:
Fixed element | Variable element per client-visit | |
Revenue | — | $36.80 |
Personnel expenses | $28,800 | $12.80 |
Medical supplies | 1,700 | 6.80 |
Occupancy expenses | 10,700 | 1.00 |
Administrative expenses | 7,800 | 0.40 |
Total expenses | $49,000 | $21.00 |
Actual results for December:
Revenue | $133,000 |
Personnel expenses | $70,040 |
Medical supplies | $21,016 |
Occupancy expenses | $14,250 |
Administrative expenses | $8,100 |
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 December would be closest to: |
$6,930 F | |
$7,246 F | |
$6,930 U | |
$7,246 U |
11 years ago
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