To solve the problem, we need to determine the activity variance for personnel expenses in July. Here's how we can do it, step-by-step:
1. Understand the given data:
- Budgeted client-visits: 2,000 visits
- Actual client-visits: 2,010 visits
- Fixed personnel expenses: \[tex]$26,100
- Variable personnel expenses per visit: \$[/tex]12.10
2. Calculate the budgeted personnel expenses:
- The budgeted expenses include both fixed and variable components.
- Fixed expenses: \[tex]$26,100
- Variable expenses: \$[/tex]12.10 per visit * 2,000 visits
- [tex]\[
\text{Budgeted Personnel Expenses} = 26,100 + 12.10 \times 2,000
\][/tex]
3. Calculate the actual personnel expenses:
- Similarly, the actual expenses include both fixed and variable components.
- Fixed expenses: \[tex]$26,100
- Variable expenses: \$[/tex]12.10 per visit * 2,010 visits
- [tex]\[
\text{Actual Personnel Expenses} = 26,100 + 12.10 \times 2,010
\][/tex]
4. Determine the activity variance:
- Activity Variance = Actual Personnel Expenses - Budgeted Personnel Expenses
- If the actual expenses are higher than the budgeted expenses, the variance is Unfavorable (U). If lower, it's Favorable (F).
Given the result:
- Budgeted Personnel Expenses: \[tex]$50,300
- Actual Personnel Expenses: \$[/tex]50,421
- Activity Variance: \[tex]$121 Unfavorable (U)
Thus, the activity variance for personnel expenses in July is \$[/tex]121 Unfavorable (U).
Therefore, the correct answer is:
- [tex]$\$[/tex] 121 U$
