Smith, the senior manager of a private investment firm, uses performance appraisals to make decisions related to promotions and pay increments. He further uses appraisals to terminate the employment of poor performers and to take disciplinary actions against those who violate the firm's policies. In this scenario, Smith focuses on the of performance appraisals.

Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to: