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Panda Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,590
Panda Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,600 client-visits, but its actual level of activity was 3,590 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 | - | $ | 36.00 | ||
Personnel expenses | $ | 30,100 | $ | 11.00 | |
Medical supplies | 1,500 | 6.40 | |||
Occupancy expenses | 8,200 | 2.50 | |||
Administrative expenses | 6,500 | 0.20 | |||
Total expenses | $ | 46,300 | $ | 20.10 | |
Actual results for October:
Revenue | $ | 129,420 | |
Personnel expenses | $ | 69,560 | |
Medical supplies | $ | 25,284 | |
Occupancy expenses | $ | 16,689 | |
Administrative expenses | $ | 6,995 | |
The spending variance for medical supplies in October would be closest to:
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