IBT Clinic uses client-visits as its measure of activity. Du…
IBT 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 3,490 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: