Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,090 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting: Fixed element per monthVariable element per client-visitRevenue - $37.00 Personnel expenses$31,100 $12.00Medical supplies 2,000 7.40Occupancy expenses 9,200 3.50Administrative expenses 7,500 0.40Total expenses$49,800 $23.30 Actual results for November: Revenue$151,535 Personnel expenses$80,140 Medical supplies$33,104 Occupancy expenses$23,019 Administrative expenses$8,895 The spending variance for medical supplies in November would be closest to: Multiple Choice $838 F $838 U $764 U $764 F
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.
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,100 client-visits, but its actual level of activity was 4,090 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element per monthVariable element per client-visitRevenue - $37.00 Personnel expenses$31,100 $12.00Medical supplies 2,000 7.40Occupancy expenses 9,200 3.50Administrative expenses 7,500 0.40Total expenses$49,800 $23.30
Actual results for November:
Revenue$151,535 Personnel expenses$80,140 Medical supplies$33,104 Occupancy expenses$23,019 Administrative expenses$8,895
The spending variance for medical supplies in November would be closest to:
Multiple Choice
$838 F
$838 U
$764 U
$764 F
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