Three Rivers Dental Associates (TRDA) is a large dental practice in Pittsburgh. The firm's controller is preparing the budget for the next year. The controller projects a total of 42,000 office visits, to be evenly distributed throughout the year. Seventy percent of the visits will be half-hour appointments, and the remainder will be one-hour visits. The average rates for professional dental services are $55 for half-hour appointments and $110 for one-hour office visits. Ninety percent of each month's professional service revenue is collected during the month when services are rendered, and the remainder is collected the month following service. Uncollectible billings are negligible. TRDAs dental associates earn $90 per hour.

TRDA uses activity-based budgeting to budget office overhead and administrative expenses. Two cost drivers are used: office visits and direct professional labor. The cost-driver rates are as follows:

Patient registration and records

$

3.50

per office visit (of any length)

All other overhead and administrative expenses

$

6.00

per direct professional labor hour

1.	Prepare the direct-professional-labor budget schedule for the month of June.

Professional services in June:
One-hour visits		hours
Half-hour visits		hours
Total direct professional labor		hours
Hourly rate for dental associates
Total direct professional labor cost

2.

Prepare the budget schedule for cash collections during June for professional services rendered during May and June.

	May		June
Half-hour visits
Billing rate
Total billings for half-hour visits
One-hour visits
Billing rate
Total billings for one-hour visits
Total billings during month
Percentage of month's billings collected during June		%		%
Collections during June
Total collections in June

3.	Prepare the overhead and administrative expense budget schedule for the month of June. Patient registration and records Other overhead and administrative expenses Total overhead and administrative expenses