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Panda Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290
Panda Clinic uses client-visits as its measure of activity. During October, 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 October:
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 October:
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 October would be closest to:
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