Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 45.20 Personnel expenses $ 34,300 $ 13.30 Medical supplies 1,600 5.40 Occupancy expenses 10,000 1.80 Administrative expenses 3,800 0.20 Total expenses $ 49,700 $ 20.70 Actual results for December: Revenue $ 108,650 Personnel expenses $ 65,755 Medical supplies $ 14,380 Occupancy expenses $ 14,000 Administrative expenses $ 4,210 The spending variance for medical supplies in December would be closest to:
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 45.20 Personnel expenses $ 34,300 $ 13.30 Medical supplies 1,600 5.40 Occupancy expenses 10,000 1.80 Administrative expenses 3,800 0.20 Total expenses $ 49,700 $ 20.70 Actual results for December: Revenue $ 108,650 Personnel expenses $ 65,755 Medical supplies $ 14,380 Occupancy expenses $ 14,000 Administrative expenses $ 4,210 The spending variance for medical supplies in December would be closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
| Fixed element per month | Variable element per client-visit | |
|---|---|---|
| Revenue | $ 0 | $ 45.20 |
| Personnel expenses | $ 34,300 | $ 13.30 |
| Medical supplies | 1,600 | 5.40 |
| Occupancy expenses | 10,000 | 1.80 |
| Administrative expenses | 3,800 | 0.20 |
| Total expenses | $ 49,700 | $ 20.70 |
Actual results for December:
| Revenue | $ 108,650 |
|---|---|
| Personnel expenses | $ 65,755 |
| Medical supplies | $ 14,380 |
| Occupancy expenses | $ 14,000 |
| Administrative expenses | $ 4,210 |
The spending variance for medical supplies in December would be closest to:
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