Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,200 client-visits, but its actual level of activity was 4,190 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 - $ 37.20 Personnel expenses $ 31,300 $ 12.20 Medical supplies 2,100 7.60 Occupancy expenses 9,400 3.70 Administrative expenses 7,700 0.20 Total expenses $ 50,500 $ 23.70 Actual results for November: Revenue $ 156,078 Personnel expenses $ 82,376 Medical supplies $ 34,788 Occupancy expenses $ 24,405 Administrative expenses $ 8,291
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 4,200 client-visits, but its actual level of activity was 4,190 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 | - | $ | 37.20 | ||
| Personnel expenses | $ | 31,300 | $ | 12.20 | |
| Medical supplies | 2,100 | 7.60 | |||
| Occupancy expenses | 9,400 | 3.70 | |||
| Administrative expenses | 7,700 | 0.20 | |||
| Total expenses | $ | 50,500 | $ | 23.70 | |
Actual results for November:
| Revenue | $ | 156,078 | |
| Personnel expenses | $ | 82,376 | |
| Medical supplies | $ | 34,788 | |
| Occupancy expenses | $ | 24,405 | |
| Administrative expenses | $ | 8,291 | |
The activity variance for personnel expenses in November would be closest to:
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