Vin yard Clinic has the following resource input information available for a routine physical examination.

•  Each exam normally requires 1.25 hours of examining room time, including:

•  45 minutes of nursing services, Lomo

•  30 minutes of physician services

• Each exam also utilizes one package of examination supplies costing $30 each.

* Including benefits, physicians earn $75/hour and nurses earn $32/hour.

* Variable overhead is budgeted at $35 per examining room hour and fixed overhead is budgeted at

$6,000 per month.

Required

Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vin yard Clinic of dedicating time to go through the budgeting process.