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 4,100 client-visits, but its actual level of activity was 4,090 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 Variable element element per per month client-visit Revenue $37.00 Personnel expenses Medical supplies Occupancy expenses Administrative expenses $31,100 $12.0o 7.40 3.50 0.40 $49,800 $23.30 2,000 9,200 7,500 Total expenses Actual results for November Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses $151,535 $ 80,1440 33,104 $ 23,019 $ 8,895 The spending variance for medical supplies in November would be closest to

Explanation / Answer

Medical supplies in Flexible budget=2000+(4090*7.4)= $32266 Spending variance for Medical Supplies=33104-32266= $838 Unfavorable

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