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

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…

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…