Question
In: Accounting
Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3300...
Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3300 client-visits, but it actually received 3400 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 27.76
Personnel expense 22400 8.75
Medical supplies exp. 500 4.71
Administration exp. 9270 0.84
Actual results:
Revenue 87487
Personnel expense 51500
Medical supplies exp. 15164
Administration exp. 12560
Calculate the sales price variance,Sales volume variance, Personnel variance. SHOW ALL STEPS
Solutions
Expert Solution
Sales Price Variance = (Actual Price - Budgetted price)×Actual Clients
= ((87487/3400)-27.76)×3400 = 6897 (U)
Sales Volume Variance = (Actual clients- budgetted clients)×Budgeted price
= (3400-3300)×27.76 = 2776 (F)
Based on given information we can compute,
Personnel variance =>
Personnel Activity Variance = (22400 + 8.75×3300) -(22400+ 8.75×3400) = 875 (U)
For computing personnel spending variance we need actual fixed costs component too. Since the problem doesn't mention it we have to exclude it.
Please comment in case of any query regarding this solution. Also do give a thumbs up for the efforts put.
ekkarill92 answered 2 years agoRelated Solutions
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...
Stivason Clinic uses client-visits as its measure of volume. During June, the clinic budgeted for 3308...
Stivason Clinic uses client-visits as its measure of volume.
During June, the clinic budgeted for 3308 client-visits, but it
actually received 3243 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 27.49
Personnel expense 22516 8.02
Medical supplies exp. 523 4.42
Administration exp. 10733 0.83
Actual results:
Revenue 83232
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Panda Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 4,300...
Panda Clinic uses client-visits as its measure of activity.
During October, the clinic budgeted for 4,300 client-visits, but
its actual level of activity was 4,290 client-visits. The clinic
has provided the following data concerning the formulas used in its
budgeting and its actual results for October:
Data used in budgeting:
Fixed element per month
Variable element per client-visit
Revenue
-
$
37.40
Personnel expenses
$
31,500
$
12.40
Medical supplies
2,200
7.80
Occupancy expenses
9,600
3.90
Administrative expenses
7,900
0.40...
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,500...
Bartosiewicz Clinic uses client-visits as its measure of
activity. During January, the clinic budgeted for 4,500
client-visits, but its actual level of activity was 4,480
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: Fixed element per
month Variable element per client-visit Revenue - $ 36.50 Personnel
expenses $ 28,500 $ 12.50 Medical supplies 1,400 6.50 Occupancy
expenses 10,400 1.00 Administrative expenses 7,500 0.10...
Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100...
Askland Clinic uses client-visits as its measure of activity.
During October, the clinic budgeted for 3,100 client-visits, buts
its actual level of activity was 3,130
client-visits. The clinic has provided the following
data concerning the formulas used in its budgeting and its actual
results for October:
Data used in budgeting:
Fixed Variable
amount
per amount
per
month client-visit
Revenue
…………………………………………………… - $28.80
Personnel expenses
…………………………………. $22,100 $
8.60
Medical supplies
………………………………………. 1,300 5.50
Occupancy
expenses……………………………….. 6,300 1.00
Administrative expenses
…………………………. 3,500 .40
Total expenses
………………………………………… $33,200 $15.50
Actual results for October:
Revenue
…………………………………………………. $86,454
Total Fixed
Portion
Personnel...
Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 4,500...
Guareno Clinic uses client-visits as its measure of activity.
During December, the clinic budgeted for 4,500 client-visits, but
its actual level of activity was 4,430 client-visits. The clinic
has provided the following data concerning the formulas used in its
budgeting and its actual results for December:
Data used in budgeting:
Fixed element per
month
Variable element per client-visit
Revenue
-
$
45.10
Personnel expenses
$
36,300
$
13.70
Medical supplies
2,000
5.70
Occupancy expenses
12,000
1.80
Administrative expenses
5,800
0.30...
Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100...
Askland Clinic uses client-visits as its measure of activity.
During October, the clinic budgeted for 3,100 client-visits, buts
its actual level of activity was 3,130
client-visits. The clinic has provided the following
data concerning the formulas used in its budgeting and its actual
results for October:
Data used in budgeting:
Fixed Variable
amount
per amount
per
month client-visit
Revenue
…………………………………………………… - $28.80
Personnel expenses
…………………………………. $22,100 $
8.60
Medical supplies
………………………………………. 1,300 5.50
Occupancy
expenses……………………………….. 6,300 1.00
Administrative expenses
…………………………. 3,500 .40
Total expenses
………………………………………… $33,200 $15.50
Actual results for October:
Revenue
…………………………………………………. $86,454
Total Fixed
Portion
Personnel...
Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100...
Askland Clinic uses client-visits as its measure of activity.
During October, the clinic budgeted for 3,100 client-visits, buts
its actual level of activity was 3,130
client-visits. The clinic has provided the following
data concerning the formulas used in its budgeting and its actual
results for October:
Data used in budgeting:
Fixed Variable
amount
per amount
per
month client-visit
Revenue
…………………………………………………… - $28.80
Personnel expenses
…………………………………. $22,100 $
8.60
Medical supplies
………………………………………. 1,300 5.50
Occupancy
expenses……………………………….. 6,300 1.00
Administrative expenses
…………………………. 3,500 .40
Total expenses
………………………………………… $33,200 $15.50
Actual results for October:
Revenue
…………………………………………………. $86,454
Total Fixed
Portion
Personnel...
Kaylar Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000...
Kaylar Clinic uses patient-visits as its measure of
activity. During September, the clinic budgeted for 3,000
patient-visits, but its actual level of activity was 2,900
patient-visits. The clinic has provided the following data
concerning the formulas used in its budgeting and its actual
results for September:
Data used in budgeting:
Fixed
Element per Month Variable Element per Month
Revenue …………………….. $0 $37.20
Personal Expenses…………. $27600 $11.30
Medical Expenses………….. $1500 $6.80
Occupancy Expenses…….... $6200 $1.70
Administrative Expenses…... $3600 $0.30
Actual results...
Manic Corporation uses customers served as its measure of activity. During June, the company budgeted for...
Manic Corporation uses customers served as its measure of
activity. During June, the company budgeted for 20,000 customers,
but actually served 19,000 customers. The company has provided the
following data concerning the formulas used in its budgeting and
its actual results for June:
Data used in budgeting:
fixed
Element
per month
Variable Element
per customer
revenue
$4.50
wages and Salaries
$23,900
$1.40
Supplies
0
$0.80
Insurance
$5,700
$0.00
Miscellaneous
$5,000
$0.40
Actual results for June:
Revenue
$85,400
wages and salaries...
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