Question
Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870
Wesolick Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,870 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue $40.50 Personnel expenses $30,900 $12.80 Medical supplies 1,400 5.60 Occupancy expenses 7,500 2.00 Administrative expenses 6,300 0.20 Total expenses $46,100 $20.60 Actual results for August: Revenue $120,375 Personnel expenses $65,916 Medical supplies $16,872 Occupancy expenses $13,200 Administrative expenses $6,974The spending variance for medical supplies in August would be closest to: $600 F $768 U $600 U $768 F
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started