Ch. 9- United Medical Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4500 client-visits, but its actual level of activity was 4480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for January: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses A) $8302 U D) $8302 F Fixed element per Variable element month per client-visit $ C) $8630 U $ 28,500 1400 10,400 7500 $ 47,800 B) $8630 F S $ S S $ $ The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: 36.50 12.50 6.50 1.00 0.10 $ 20.10 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: 129,000 70,010 21,010 13,180 7430
Ch. 9- United Medical Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4500 client-visits, but its actual level of activity was 4480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expenses Actual results for January: Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses A) $8302 U D) $8302 F Fixed element per Variable element month per client-visit $ C) $8630 U $ 28,500 1400 10,400 7500 $ 47,800 B) $8630 F S $ S S $ $ The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: 36.50 12.50 6.50 1.00 0.10 $ 20.10 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: 129,000 70,010 21,010 13,180 7430
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Ch. 9- United Medical Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4500
client-visits, but its actual level of activity was 4480 client-visits. The clinic has provided the following data
concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expenses
Actual results for January:
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
A) $8302 U
D) $8302 F
Fixed element per Variable element
month
per client-visit
$
C) $8630 U
$ 28,500
1400
B) $8630 F
10,400
7500
$ 47,800
S
$
S
S
$
The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending
variance column on the flexible budget performance report) for January would be closest to:
36.50
$
12.50
6.50
1.00
0.10
$ 20.10
The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending
variance column on the flexible budget performance report) for January would be closest to:
129,000
70,010
21,010
13,180
7430
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