Askland Clinic uses client-visits as its measure of activity. During October, the clinic budgeted for 3,100 client-visits, buts its actual level of activity was 3,130 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

Fixed Variable

amount per amount per

month client-visit

Revenue - $28.80

Personnel expenses . $22,100 $ 8.60

Medical supplies . 1,300 5.50

Occupancy expenses.. 6,300 1.00

Administrative expenses . 3,500 .40

Total expenses $33,200 $15.50

Actual results for October:

Revenue . $86,454

Total Fixed Portion

Personnel expenses.. $47,098 $24,350

Medical supplies.. $18,925 $ 1,290

Occupancy expenses $ 9,170 $ 6,520

Administrative expenses.. $ 4,972 $ 3,640

Required:

Part aPrepare budgeted amounts for the planned visits and the actual visits (i.e. prepare a flexible

budget)

Part bPrepare a flexible budget performance report for October.

	Flexible Budget
	Unit	Total		Budgeted Amounts For:
	Var Cost	Fixed Cost		3,100 visits	3,130 visits
Revenues
Variable Costs
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total variable costs
Contribution margin
Fixed Costs
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total fixed costs
Income from operations
Part b
Flexible budget performance report for October
		Per Unit		Flexible	Actual		Fav or
		Amounts		Budget	Results	Variance	Unf
Revenues
Variable Costs
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total variable costs
Contribution margin
Fixed Costs
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total fixed costs
Income from operations