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Question 3 of 6 - 1 0 View Policies Current Attempt in Progress The Davis and Miller Dental Clinic provides both preventive and orthodontic dental

Question 3 of 6
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The Davis and Miller Dental Clinic provides both preventive and orthodontic dental services. The two owners, David Davis and Jennifer Miller, operate the clinic as two separate investment centres: preventive services and orthodontic services. Each owner is in charge of one centre: David for preventive services and Jennifer for orthodontic services. Each month, they prepare an income statement on the two centres to evaluate performance and make decisions about how to improve the clinic's operational efficiency and profitability.
Recently, they have been concerned about the profitability of the preventive services operations. For several months, the centre has been reporting a loss. In addition, the owners know that the investment in operating assets at the beginning of the month was $101,500, and it was $98,500 at the end of the month. They have asked for you to evaluate their current performance reporting system. Shown below is the responsibility report for the month of May 2022:
\table[[,Actual,,\table[[Difference],[from Budget]]],[Service revenue,$47,600,$2,100,\table[[Favourablo],[SUPPO]]],[Variable costs,,],[Filling materials,7,100,300,Unfavourable]]\table[[Variable costs],[Filling materials,7,100,300,Unfavourable],[Novocaine,4,300,200,Unfavourable],[Supplies,1,900,300,Favourable],[Dental assistant wages,2,500,-0-,Neither Favourable nor],[Utilities,450,50,Unfavourable],[Total variable costs,16,250,250,Unfavourable],[Fixed costs],[Allocated portion of receptionist's salary,3,200,200,Unfavourable],[Dentist salary,13,000,700,Unfavourable],[Equipment depreciation,6,000,-0-,Neither Favourable nor],[Allocated portion of building depreciation,15,100,1,200,Unfavourable],[Total fixed costs,37,300,2,100,Unfavou -= sUPPORT],[perating income (loss),$(5,950,),$250,Unfavourable]](a)
Prepare a responsibility report for an investment centre as illustrated in the chapter. (Round ROI to 2 decimal places, e.g.1.57%.)
DAVIS AND MILLER DENTAL CLINIC
Preventive Services
Responsibility Report
Budget
Actual
Ne
$
$
$
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