Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

aizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $64.90 per patient-visit. Personnel

aizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $64.90 per patient-visit. Personnel expenses should be $36,600 per month plus $16.70 per patient-visit. Medical supplies should be $2,900 per month plus $12.10 per patient-visit. Occupancy expenses should be $9,300 per month plus $6.50 per patient-visit. Administrative expenses should be $4,800 per month plus $4.60 per patient-visit.

The clinic reported the following actual results for November:

Patient-visits 2,890
Revenue $ 209,240
Personnel expenses $ 91,320
Medical supplies $ 41,840
Occupancy expenses $ 20,950
Administrative expenses $ 11,350

Required:

Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Laizure Clinic
Revenue and Spending Variances
For the Month Ended November 30
Actual Results Flexible Budget Revenue and Spending Variances
Patient-visits 2,890 2,890
Revenue
Expenses:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expense
Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Colin Drury

5th Edition

1861525362, 978-1861525369

More Books

Students also viewed these Accounting questions

Question

3. Chardonnay is best served with

Answered: 1 week ago

Question

What questions do you have for us?

Answered: 1 week ago