Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,950 client-visits, but its actual level of activity was 3,940 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 - $ 36.70 Personnel expenses $ 30,800 $ 11.70 Medical supplies 1,850 7.10 Occupancy expenses 8,900 3.20 Administrative expenses 7,200 0.50 Total expenses $ 48,750 $ 22.50 Actual results for November: Revenue $ 144,795 Personnel expenses $ 76,861 Medical supplies $ 30,653 Occupancy expenses $ 21,015 Administrative expenses $ 8,936 The spending variance for medical supplies in November would be closest to:
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.
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,950 client-visits, but its actual level of activity was 3,940 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 | - | $ | 36.70 | ||
| Personnel expenses | $ | 30,800 | $ | 11.70 | |
| Medical supplies | 1,850 | 7.10 | |||
| Occupancy expenses | 8,900 | 3.20 | |||
| Administrative expenses | 7,200 | 0.50 | |||
| Total expenses | $ | 48,750 | $ | 22.50 | |
Actual results for November:
| Revenue | $ | 144,795 | |
| Personnel expenses | $ | 76,861 | |
| Medical supplies | $ | 30,653 | |
| Occupancy expenses | $ | 21,015 | |
| Administrative expenses | $ | 8,936 | |
The spending variance for medical supplies in November would be closest to:
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