Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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: Fixed element per month Variable element per patient-visit Revenue........ Personnel expenses. $37.20 $27,600 $11.30 Medical supplies.... $1,500 $6.80 Occupancy expenses.. $6,200 $1.70 Administrative expenses.. $3,600 $0.30 Actual results for September: Revenue. $105,010 Personnel expenses. $61,020 Medical supplies... $22,120 Occupancy expenses... $10,930 $4,570 Administrative expenses.... Compute Mayo's total expense spending variance. State answer as a positive

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Reporting With Powerpivot

Authors: Florent Cailly, Thomas Brajcich

1st Edition

1517437563, 978-1517437565

More Books

Students also viewed these Accounting questions

Question

=+5. What change do you need to make to achieve desired position?

Answered: 1 week ago