Duprey Clinic uses client-visits as its measure of activity. During January, the

Question

Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January Fixed Variable Element element per per Month client-visit Revenue $58.40 Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $33,500 1,000 9,300 5,300 $49,100 $18.00 9.90 2.20 0.40 $30.50 Actual results for January: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses 5,930 $127,950 69,720 23,125 14,290 The personnel expenses in the planning budget for January would be closest to:

Explanation / Answer

Q no. 4 Calculation of personnel expenses in planning budget for January:- Budgeted Client Visits 2200 Variable Personnel Cost per client visit $             18.00 Total Variable Personnel Cost $     39,600.00 Fixed Personnel Cost Per month $     33,500.00 Total $     73,100.00 5 Tarras Corporation Planning Budget For the month ended June 30 Budgeted Customer Served 36000 Revenue (36000*4.45) $ 1,60,200.00 Expenses:- Wages and Salaries ( 33600 + 36000*1.57) $     90,120.00 Supplies (36000*0.77) $     27,720.00 Insurance $     16,000.00 Miscellaneous Expenses (4600 + 0.47*36000) $     21,520.00 Total Expenses $ 1,55,360.00 Net Operating Income $       4,840.00 7 Particulars Actual Budgeted Variance Revenue $ 1,57,150.00 $ 1,59,750.00 (-) Expenses:- Wages and Salaries $     45,470.00 $     45,650.00 Food and supplies $     65,615.00 $     67,450.00 Facility Expenses $     36,680.00 $     36,800.00 Administrative Expenses $       9,300.00 $     10,500.00 1200 - Favorable Total Expenses $ 1,57,065.00 $ 1,60,400.00 Net Operating Income $             85.00 $         -650.00 Activity Variance for administrtative expenses - 1200 - Favorable 9 Total Budgeted overhead cost $237900 Already caluclated in the question 10 Arrasmith Corporation Flexible budget Performance report - February 28 Particulars Actual Flexible Budget Revenue and Spending Variance Planning Budget Activity Variance Customer Served 30400 30400 35600 Revenue $ 1,31,800.00 $ 1,24,640.00 7160 ( Favorable) $       1,45,960.00 21320 Unfavorable Expenses:- Wages and Salaries $     68,600.00 $     72,712.00 4112 Favorable $           79,368.00 6656 Favorable Supplies $     15,000.00 $     20,672.00 5672 Favorable $           24,208.00 3536 Favorable Insurance $     11,000.00 $     11,000.00 0 $           11,000.00 0 Miscellaneous Expenses $     20,700.00 $     17,944.00 2756 Unfavrable $           19,816.00 1872 Favorable Total Expenses $ 1,15,300.00 $ 1,22,328.00 7028 Favorable $       1,34,392.00 12064 Favorable Net Operating Income $     16,500.00 $       2,312.00 14188 $           11,568.00 $              9,256.00

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