Can you please answer them :] --------------------------------------------------
ID: 2389020 • Letter: C
Question
Can you please answer them :]
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Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April: The net operating income in the planning budget for April
would be closest to:
a. $14,425 b. $19,519 c. $13,550 d. $20,115
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13. Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
The activity variance for net operating income in January would be closest to:
a. $2,019 U b. $2,019 F c. $489 F d. $489 U
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14. Placek Hospital bases its budgets on patient-visits. The hospital's static budget for October appears below:
The total overhead cost at an activity level of 7,700 patient-visits per month should be:
a. $129,550 b. $121,720 c. $129,100 d. $137,830
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Thank you!
Explanation / Answer
Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April: The net operating income in the planning budget for April
would be closest to:
a. $14,425 b. $19,519 c. $13,550 d. $20,115
Revenue per clinet visit= 38.10
Total variable per cline= 20.60
Contribituion =17.50
Total =44,200
17 .50 x3300 -44,200 =13 550