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Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3360...

Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3360 client-visits, but it actually received 3362 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April. All costs are mixed costs.

Data used in budgeting:

Fixed amount Variable amount per client visit

Revenue 25.45

Personnel expense 22555 8.72

Medical supplies exp. 586 4.93

Administration exp. 10182 1.18

Actual results:

Revenue 84171

Personnel expense 51046   

Medical supplies exp. 14705

Administration exp. 12725

1.Calculate the sales price variance (absolute value, whole number).

2. Sales volume variance (absolute value, whole number):

3.Personnel variance (absolute value, whole number):

2. Pa = ? $/oz. (Answer to 3 significant digits.)

3.Ub = ? oz / unit. (Answer to 3 significant digits.)

Solutions

Expert Solution

Budgeted Amounts
Variance Calculation Fixed Variable/unit Budgeted Amount Actual Amount
Client Visits= q 3360 3362
Revenue /Visit 25.45 25.036
Total Revenue $         85,512 $              84,171
Personnel Expense 22555 8.72 51854.2 51046
Admin Exp 10182 1.18 14146.8 12725
Medical Supplies Exp 586 4.93 17150.8 14705
Flexible Budget and Variance Analysis
Details Budget Flexible Budget Activity Variance F /U Actual Revenue/Specding Varinace F /U
No of Client Visit 3360 3362 3362
Revenue              85,512                85,563                     51 F                    84,171          (1,392) U
So Sales Vol Var =51 F
Sales Price Variance = (1392) U
Personnel Expense=22555+8.72q=        51,854.20          51,871.64             (17.44) U                  51,046         825.64 F
Admin Exp=10182+1.18q 14146.8 14149.16               (2.36) U                  12,725      1,424.16 F
Medical Supplies Exp =586+4.93*q= 17150.8 17160.66               (9.86) U 14705      2,455.66 F

ekkarill92 answered 2 years ago
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