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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,850 client-visits, but its actual level of activity was 3,840
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,850 client-visits, but its actual level of activity was 3,840 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element per month | Variable element per client-visit | ||||
Revenue | - | $ | 36.50 | ||
Personnel expenses | $ | 30,600 | $ | 11.50 | |
Medical supplies | 1,750 | 6.90 | |||
Occupancy expenses | 8,700 | 3.00 | |||
Administrative expenses | 7,000 | 0.30 | |||
Total expenses | $ | 48,050 | $ | 21.70 | |
Actual results for November:
Revenue | $ | 140,352 | |
Personnel expenses | $ | 74,725 | |
Medical supplies | $ | 29,069 | |
Occupancy expenses | $ | 19,729 | |
Administrative expenses | $ | 7,920 | |
The spending variance for medical supplies in November would be closest to:..
Multiple Choice
-
$823 F
-
$823 U
-
$754 U
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