Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290 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 month Variable element per client-visit Revenue - $ 37.40 Personnel expenses $ 31,500 $ 12.40 Medical supplies 2,200 7.80 Occupancy expenses 9,600 3.90 Administrative expenses 7,900 0.40 Total expenses $ 51,200 $ 24.50 Actual results for November: Revenue $ 160,661 Personnel expenses $ 84,652 Medical supplies $ 36,512 Occupancy expenses $ 25,831 Administrative expenses $ 9,367

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290 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 month Variable element per client-visit
Revenue   -   $ 37.40
           
Personnel expenses $ 31,500   $ 12.40
Medical supplies   2,200     7.80
Occupancy expenses   9,600     3.90
Administrative expenses   7,900     0.40
Total expenses $ 51,200   $ 24.50
 

 

Actual results for November:

 

   
Revenue $ 160,661  
Personnel expenses $ 84,652
Medical supplies $ 36,512
Occupancy expenses $ 25,831
Administrative expenses $ 9,367
 

 

The spending variance for medical supplies in November would be closest to:

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education