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
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 4,300 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:
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