4. Montgomery Hospital uses patient-visits as its measure of activity. During July, the hospital budgeted for 2,700 patient-visits, but its actual level of activity was 3,200 patient-visits. Ihe clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $49.60q Personnel expenses: $31,200 +$15.100q Medical supplies: $700+$9.60q Occupancy expenses: $10,000+ $2.00q Administrative expenses: $7,000+ $0.20q Required: (1). Prepare Montgomery Hospital (a). Planning budget and (b) Flexible budget for July; and (c) calculate activity variance. Label each variance as favorable (F) or unfavorable (U) (12 points)