Laizure Clinic uses patient-visits as its measure of activity. The clinic bases

Question

Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $72.90 per patient-visit. Personnel expenses should be $37,400 per month plus $17.50 per patient-visit. Medical supplies should be $3,700 per month plus $12.90 per patient-visit. Occupancy expenses should be $10,100 per month plus $10.50 per patient-visit Administrative expenses should be $5.600 per month plus $8.60 per patient-visit The clinic reported the following actual results for November 1.3 points 2,970 $249,240 s 99,320 48,240 27,350 s 17,750 Patient-visits 004148 Personnel expenses Medical supplies Oocupancy expeases Administrative expenses Required: Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values-)

Explanation / Answer

1) Revenue and spending variance :

2) Budgeted account receivable on may 31 = 200000*50%+131000*20% = $126200

Revenue 32727 F Expense Personnel expense 9945 U Medical supplies 6227 U Occupancy expense 13935 F Administrative expense 13392 F Total expense 11155 F Net income 43882 F

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