You recei 2 administrator, is very concerned about cost control and has asked th

Question

You recei 2 administrator, is very concerned about cost control and has asked that pertorma reports be prepared that compare budgeted and actual amounts for medical assistar clinic supplies, and lab tests. Past financial studies have shown that the cost of cli supplies used is driven by the number of medical assistant labor hours worked, where lab tests are highly correlated with the number of patients served The following information is available for June points . Lab tests: Actual lab tests for June cost $428.032 and averaged 44 per patient. Each patient is anticipated to have four lab tests, at an average budgeted cost of $68 per . Medical assistonts. Valley View's standard wage rate is $13 per hour, and each ossistont is expected to spend 36 minutes with a patient. Assistants totaled 850 hours . Clinic supplies The cost of clinic supplies used Is budgeted at $11 per labor hour, and test Book in helping the 1,520 patients seen, ot an average pay rate of $16.00 per hour Refurences the actual cost of supplies used was $9,650 Required: 1. Prepare a report tht shows bucigeted and actuel costs for the 1,520 patients served during June Compute the differernces Ivariances) between these amounts and label hem as voraeiaver Indicete the effect of each varience by selecting Fevorable orUnitl Select None and enter "O" for no effect (i.e. zero 1,520 Patents 1.520 Patients Variance Medical asistartss Cinic suppres ntavorable

Explanation / Answer

Workings

Budget Actual 1520 Patient 1520 Patient Variance Medical Assistant 11856 13600 1744 Unfavorable Clininc Supplies 10032 9650 382 Favorable Lab Test 413440 428032 14592 Unfavorable Total 435328 451282 16718 Unfavorable

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