Stailey Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,200 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $34.90q
Personnel expenses: $27,300 + $10.30q
Medical supplies: $1,400 + $6.50q
Occupancy expenses: $6,000 + $1.80q
Administrative expenses: $5,300 + $0.40q
The clinic reported the following actual results for September: Required:
Prepare a report showing the clinic's revenue and spending variances for September. Label each variance as favorable (F) or unfavorable (U).

Question

Stailey Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,200 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $34.90q
Personnel expenses: $27,300 + $10.30q
Medical supplies: $1,400 + $6.50q
Occupancy expenses: $6,000 + $1.80q
Administrative expenses: $5,300 + $0.40q
The clinic reported the following actual results for September:  Required:
Prepare a report showing the clinic's revenue and spending variances for September. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Stailey Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,200 patient-visits, but its actual level of activity was 2,800 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $34.90q
Personnel expenses: $27,300 + $10.30q
Medical supplies: $1,400 + $6.50q
Occupancy expenses: $6,000 + $1.80q
Administrative expenses: $5,300 + $0.40q
The clinic reported the following actual results for September:  Required:
Prepare a report showing the clinic's revenue and spending variances for September. Label each variance as favorable (F) or unfavorable (U).

Stailey Clinic Uses Patient-Visits as Its Measure of Activity