Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of...

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Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,06

Indy Autos cost formula for its supplies cost is $1,500 per month plus $10 per frame. For the month of October, the company

Bonavita Corporation is a service company that measures its output by the number of customers served. The company has provide

business accounting

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Answer 1

Answer #1

Answer :- Calculation of spending Variance for administrative expense = ( 1,050*3 + $17,000) - $19,080

Spending Variance = 1,070 Favorable

Correct answer is option C. ( 1,070 Favorable).

2. Calculation of Activity Variance:- {[(592 *$10) + $1500] -[597 * $10) + $1500]}

Activity Variance = $7,420 - $7,470

Activity Variance = $50 Unfavorable

So the correct answer is option A. ( $50 unfavorable)

3.Calculation of Net operating income :-

Net operating income = Revenues - Expenses

Net operating income = (33 *$4000) - (33 *$1200) - (33 *$500) - $41,300 - $33,000

Net operating income = $132,000 - $39,600 - $16,500 - $41,300 - $33,000

Net Operating Income = $1600

So the net operating income is $1600 therefore the correct answer is option B.(1600)

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Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of...

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