Question

Everyone Deserves to Smile mobile dentist office budgeted for 4335 patient visits a year Everyone Deserves to Smile actually saw 4470 patients during the year and they have provided the following data IVariable Portion per Fixed Portion for Budgettiont visit for Budget Actual Results Revenue Personnel Expenses Medical Supplies Occupancy Expenses Admin Expenses Based on the given information, what is the flexible budget variance for admin expenses? $72 $419,500 $70,000 $67,000 $13 $1.50 $0.75 $38,900 $20,000 $19.700 $10,000 $18,000 O $1652.5 Favorable O $1551 25 Unfavorable O $1652 5 Unfavorable O $1551.25 Favorable

Answer 1

Flexible budget variance for admin expesnes? To find out Flexible budget variance we have to calculate budget admin expenses. Budget admin expenses variance = Budgeted admin expenses - Actual admin expenses. If answer is more than zero then its favourable else un favourable Actual Admin Expnes(given) 19700 Budgeted Admin Expenses (Budgeted patint * Budgeted admin variable expenses)+Fixed Admin Expenses (4335 * 0.75) +18000=Budgeted admin expenses 3251.25+18000 = Budgeted admin expenses 21251.25 = Budgeted admin expenses Flexible Budget variance for Admin Expenses Budget admin expenses variance = Budgeted admin expenses - Actual admin expeses Budget admin expenses variance = 21251.25-19700 Budget admin expenses variance = 1551.25/- Favourable

Hence:

Option D is Answer.

1551.25/- Favourable