1. Pay linic uses patient-visits as its measure of activity. The following repor

Question

1. Pay linic uses patient-visits as its measure of activity. The following report compares the planning budget to the actual operating results for the month of January: Paye Clinic Comparison of Actual Results to Planning Budget For the Month Ended January 31 Actual Planning Results Budget Variances Patient-visits 3,600 3,900 Revenue ($33.50q) $120410 $130,650 $10,240 U $30,800+ $10.60q)2 100 S540). 69.99072.1 Medical supplies ($2,100 $5.40g) 21,990 23,160 1,170F 470 F Occupancy expenses (7,600$1.20q) 11,810 2,280 6,770 707 Administrative expenses ($5,900+$0.30q).. Total expense Net operating income 110560 114650 4090 F S 16,000 $6 150U Required Prepare the clinic's flexible budget performance report for January. Label each variance as favorable (F) or unfavorable (U)

Explanation / Answer

Flexible budget performance report :

Actual results Flexible budget variance Flexible budget Volume variance Planning budget Patient Visit 3600 3600 3900 Revenue 120410 190 U 120600 10050 U 130650 Expenses : Personnel expenses 69990 1030 U 68960 3180 F 72140 Medical supplies 21990 450 U 21540 1620 f 23160 Occupancy expenses 11810 110 F 11920 360 F 12280 Administrative exp 6770 210 F 6980 90 F 7070 Total expenses 110560 1160 U 109400 5250 F 114650 Net income 9850 1350 U 11200 4800 U 16000

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