Tennies Clinic uses client-visits as its measure of activity. During November, t

Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,650 client-visits, but its actual level of activity was 3,640 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:

Actual results for November:

The spending variance for medical supplies in November would be closest to:

Fixed element per month Variable element per client-visit Revenue - $ 36.10 Personnel expenses $ 30,200 $ 11.10 Medical supplies 1,550 6.50 Occupancy expenses 8,300 2.60 Administrative expenses 6,600 0.30 Total expenses $ 46,650 $ 20.50

Explanation / Answer

Spending variance medical supplies = Actual expense-Flexible budget expense

= 26021-(3640*6.5+1550)

Spending variance medical supplies = 811 U

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