Mayo Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results fo September: Data used in budgeting: Revenue Personnel expenses Medical supplies.. Occupancy expenses.. Administrative expenses. Actual results for September: Revenue Personnel expenses. Medical supplies. Occupancy expenses.... Administrative expenses Fixed element per month $27,600 $1,500 $6,200 $3,600 $105,010 $61,020 $22,120 $10,930 $4 570 Variable element per patient-visit $37.20 $11.30 $6.80 $1.70 $0.30
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.
![Mayo Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of
activity was 2,900 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for
September:
Data used in budgeting:
Revenue
Personnel expenses
Medical supplies.
Occupancy expenses.
Administrative expenses..
Actual results for September:
Revenue
Personnel expenses.
Medical supplies.
Occupancy expenses.
Administrative expenses.....
Fixed element
per month
$27,600
$1,500
$6,200
$3,600
$105,010
$61,020
$22,120
$10,930
$4,570
Variable
element per
patient-visit
$37.20
$11.30
$6.80
$1.70
$0.30
Compute the total Revenue variance (due to a difference in the actual amount collected per customer from expected). State answer as a
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