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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,540
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,550 client-visits, but its actual level of activity was 3,540 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 | $ 0 | $ 35.90 |
Personnel expenses | $ 30,000 | $ 10.90 |
Medical supplies | 1,450 | 6.30 |
Occupancy expenses | 8,100 | 2.40 |
Administrative expenses | 6,400 | 0.50 |
Total expenses | $ 45,950 | $ 20.10 |
Actual results for November:
Revenue | $ 127,263 |
---|---|
Personnel expenses | $ 68,557 |
Medical supplies | $ 24,557 |
Occupancy expenses | $ 16,111 |
Administrative expenses | $ 7,952 |
The spending variance for medical supplies in November would be closest to:
rev: 06_30_2020_QC_CS-208650
Multiple Choice
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$742 U
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$805 F
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$742 F
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$805 U
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