Lucky Hospital built a Rheumatology Clinic in 2015 and wants to review its revenue variance at the end of 2015 and compare it to budget. Per the givens below, answer the following questions:

	planned	actual
visits	12,000	13,400
clinic revenue	$264,000	$265,320
parking revenue	$30,000	$40,200
clinic expense	$138,000	$174,200

a) Determine the variances between planned and actual budgets. Label each as favorable or unfavorable

b) Create a flexible budget for revenue based on ACTUAL visits:

1. For the planned budget how much is clinical revenue per visit?

2. Utilize the rate calculated in part b.1 and apply it to the ACTUAL number of visits. How much revenue should we expect for the ACTUAL number of visits for our flexible budget? (Remember: the flexible budget is actual volume at budgeted rates). Did we achieve this?

3. How much was the ACTUAL revenue per visit rate? Was this favorable or unfavorable?