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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,950 client-visits, but its actual level of activity was 3,940
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,950 client-visits, but its actual level of activity was 3,940 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 | - | $ | 36.70 | ||
Personnel expenses | $ | 30,800 | $ | 11.70 | |
Medical supplies | 1,850 | 7.10 | |||
Occupancy expenses | 8,900 | 3.20 | |||
Administrative expenses | 7,200 | 0.50 | |||
Total expenses | $ | 48,750 | $ | 22.50 | |
Actual results for November:
Revenue | $ | 144,795 | |
Personnel expenses | $ | 76,861 | |
Medical supplies | $ | 30,653 | |
Occupancy expenses | $ | 21,015 | |
Administrative expenses | $ | 8,936 | |
The spending variance for medical supplies in November would be closest to:
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