Everyone Deserves to Smile mobile dentist office budgeted for 4,335 patient visi

Question

Everyone Deserves to Smile mobile dentist office budgeted for 4,335 patient visits a year. Everyone Deserves to Smile actually saw 4,435 patients during the year and they have provided the following data:

Fixed Portion for Budget

Variable | Portion per patient visit for Budget |

Actual Results

Revenue

$71

$416,700

Personnel Expenses   

$90,000

$87,000

Medical Supplies

$11

$38,900

Occupancy Expenses

$,000

$1.50

$20,000

Admin Expenses

$19,000

$0.50

$19,550

Based on the given information, what is the flexible budget variance for admin expenses?

A- 1,667.5 unfavorable

B- 1,617.5 unfavorable

C- 1,617.5 favorable

D- 1,667.5 favorable

Explanation / Answer

D.1,667.50 favorable.

flexible budget expenditure for 4,435 patients = $19,000 +( $0.50* 4,435) =>$21,217.50.

actual expenditure = $19,550.

flexible budget variance = 21,217.50 - 19,550 =>1,667.50...(favourable)

Favourable since actual expenditure is less than budgeted amount.

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