ennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,390 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
ennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,400 client-visits, but its actual level of activity was 3,390 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 element per month | Variable element per client-visit | |
|---|---|---|
| Revenue | $ 0 | $ 35.60 |
| Personnel expenses | $ 29,700 | $ 10.60 |
| Medical supplies | 1,300 | 6.00 |
| Occupancy expenses | 7,800 | 2.10 |
| Administrative expenses | 6,100 | 0.20 |
| Total expenses | $ 44,900 | $ 18.90 |
Actual results for November:
| Revenue | $ 120,854 |
|---|---|
| Personnel expenses | $ 65,608 |
| Medical supplies | $ 22,436 |
| Occupancy expenses | $ 14,437 |
| Administrative expenses | $ 6,563 |
The activity variance for personnel expenses in November would be closest to:
rev: 06_30_2020_QC_CS-208650
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
