Smiles Dental Practice has been examining its overhead cost control procedures.

The level of activity in the facility is measured by the number of patients treated in the budget

period.

The budget for the current year is $9,000$ patients. Actual patients is expected to be met or

even exceeded.

During the first $4$ months $3,200$ patients were treated. Assume the average number of patients

per month remains constant.

The actual variable overhead costs incurred during this four$-$month period are as follows:

Expense

Staffing $41,280$

Power $17,920$

Supplies $38,080$

Other $6,400$

Total $103,680$

The practice accountant believes that the variable overhead costs will be incurred at the same

rate during the remaining $8$ months.

Fixed overheads are budgeted for the whole year as follows:

Expense

Supervision $120,000$

Depreciation$/$finance $210,000$

Other $60,000$

Total $390,000$

The dental practice actually treated $7,200$ patients during remaining $8-$month period.

Actual variable overheads were $207,600$ and the actual fixed overheads were $245,000.$

In summary form, examine how well the home exercised control over its overheads