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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
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