The variable overhead rate variance, accounting homework help

Question 16

Gum Professionals uses client-visits as its measure of activity. During September, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 4,200 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

	Monthly	Variable
	Fixed Cost	Unit Cost
Revenue		$ 75.00
Personnel expenses	$ 25,000	16.25
Medical expenses	900	5.00
Occupancy expenses	12,000	3.50
Administrative expenses	7,500	1.00
Total expenses	$ 45,400	$ 25.75

Actual results for September:

Revenue	$ 292,000
Personnel expenses	$ 93,500
Medical expenses	$ 19,000
Occupancy expenses	$ 24,000
Administrative expenses	$ 12,000

The activity variance for net operating income in September would be _______.

You must enter your answer in the following format for a favorable variance: $x,xxx F

You must enter your answer in the following format for an unfavorable variance: $x,xxx U