Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,650 client-visits, but its actual level of activity was 3,640 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 $ 36.10 Personnel expenses $ 30,200 $ 11.10 Medical supplies 1,550 6.50 Occupancy expenses 8,300 2.60 Administrative expenses 6,600 0.30 Total expenses $ 46,650 $ 20.50 Actual results for November: Revenue $ 131,586 Personnel expenses $ 70,573 Medical supplies $ 26,021 Occupancy expenses $ 17,277 Administrative expenses $ 7,468 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 3,650 client-visits, but its actual level of activity was 3,640 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 | $ 36.10 |
| Personnel expenses | $ 30,200 | $ 11.10 |
| Medical supplies | 1,550 | 6.50 |
| Occupancy expenses | 8,300 | 2.60 |
| Administrative expenses | 6,600 | 0.30 |
| Total expenses | $ 46,650 | $ 20.50 |
Actual results for November:
| Revenue | $ 131,586 |
|---|---|
| Personnel expenses | $ 70,573 |
| Medical supplies | $ 26,021 |
| Occupancy expenses | $ 17,277 |
| Administrative expenses | $ 7,468 |
The spending variance for medical supplies in November would be closest to:
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