Exercise 2. Almana Hospital uses patient-visits as its measure of activity. The hospital has provided the following report: Almana Hospital Comparison of Actual Results to Planning Budget For the Month Ended May 31 Variances Actual Planning Flexible Budget Results Budget 2,000 2,300 300 Unfavorable $76,110 $83,720 7610 Unfavorable 43,240 44,320 13,990 16,280 Patient-visits Revenue ($36.409) Expenses: Personnel expenses ($20,400 + $10.409) Medical supplies ($1,100 + $6.609) Occupancy expenses ($6,400 + $1.500) Administrative expenses ($2,400+ $0.40q) Total expense Net operating income 9,800 9,850 3,080 3,320 70,110 73,770 $6,000 $9,950 Required: a) Prepare a flexible budget. b) Prepare a report showing the hospital's revenue and spending variances for May. c) Label each variance as favorable (F) or unfavorable (U). Fill in the last column of the table above