Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,260 client-visits, but its actual level of activity was 2,310 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for February Fixed element per month Revenue $ 162,210 Personnel expenses $ 81,645 Medical supplies $ 31,305 Occupancy expenses $ 18,000 Administrative expenses $6,215 he revenue variance for February would be closest to: $0 $ 32,900 1,800 10,300 5,600 $ 50,600 Variable element per client-visit $68.80 $ 22.10 13.10 4.00 .70 $39.90
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,260 client-visits, but its actual level of activity was 2,310 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for February Fixed element per month Revenue $ 162,210 Personnel expenses $ 81,645 Medical supplies $ 31,305 Occupancy expenses $ 18,000 Administrative expenses $6,215 he revenue variance for February would be closest to: $0 $ 32,900 1,800 10,300 5,600 $ 50,600 Variable element per client-visit $68.80 $ 22.10 13.10 4.00 .70 $39.90
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
A. $6,722 F
B. $3,282 U
C. $3,282 F
D. $6,722 U
Transcribed Image Text:Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,260 client-visits, but its actual level of
The clinic has provided the following data concerning the formulas used in its budgeting and its actual results
activity was 2,310 client-visits
for February
Data used in budgeting:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
Actual results for February
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Fixed element per
month
$ 162,210
$ 81,645
$31,305
$ 18,000
$ 6,215
The revenue variance for February would be closest to
$0
$ 32,900
1,800
10,300
5,600
$ 50,600
Variable element
per client-visit
$ 68.80
$ 22.10
13.10
4.00
70
$39.90
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