Vinyard Clinic has the following resource input information available for a routine examination.

Each examination normally requires 1.25 hours of examining room time, including:

45 minutes of nursing services,

30 minutes of physician services

Each examanation also utilizes one package of examination supplies costing $32 each.

Including benefits, physicians earn $77/hour and nurses earn $34/hour.

Variable overhead is budgeted at $37 per examining room hour and fixed overhead is budgeted at $7,000 per month.

Required Prepare an output/input budget for October when 500 routine examinations are planned. Discuss some of the likely benefits to Vinyard Clinic of dedicating time to go through the budgeting process.

VINYARD CLINIC
Output/Input Budget
For the Month of October
Examining supplies		Answer
Labor:
Nursing services	Answer
Physician services	Answer	Answer
Variable overhead		Answer
Fixed overhead		Answer
Total budget		Answer