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 Actual Planning Flexible Budget Variances Results Budget Patient-visits (q) 2,000 2,300 300 Revenue 7,610 $76,110 $83,720 ($36.40q) Expenses: Personnel 1,080 expenses 43,240 44,320 ($20,400+ $10.40q) Medical 2,290 supplies ($1,100 13,990 16,280 +$6.60q) Occupancy 50 expenses ($6,400 9,800 9,850 +$1.50q) Administrative 240 expenses ($2,400 3,080 3,320 +$0.40q) Total expense 70,110 73,770 3,660 Net operating 3,950 $6,000 $9,950 income 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.