Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Fixed element per month $ 0 $ 34,300 1,600 10,000 3,800 $ 49,700 Variable element per client-visit $ 45.20 $ 13.30 5.40 1.80 0.20 $ 20.70 Actual results for December: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses $ 108,650 $ 65,755 $ 14,380 $ 14,000 $ 4,210 The spending variance for medical supplies in December would be closest to
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started