Explain the spending variance for medical supplies


Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

  • Fixed element per month Variable element per client-visit
  • Revenue... NONE $47.10
  • Personal expenses... $22,700 $16.90
  • Medical supplies... 1,600 6.50
  • Occupancy expenses... 6,900 1.50
  • Administrative expenses... 3,400 0.40
  • Total expenses.. $34600 $25.30
  • Actual results for July
  • Revenue... $101,491
  • Personal expenses... $55,699
  • Medical supplies... $15,895
  • Occupancy expenses... $9,785
  • Administrative expenses... $4,424

The spending variance for medical supplies in July would be closest to?

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Accounting Basics: Explain the spending variance for medical supplies
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