Vernon Clinic uses patient-visits as its measure of activity.During February,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 2,800 patient-visits.The clinic bases its budgets on the following information: Revenue should be $30.20 per patient-visit.Personnel expenses should be $20,600 per month plus $9.70 per patient-visit.Medical supplies should be $1,400 per month plus $5.40 per patient-visit.Occupancy expenses should be $5,700 per month plus $1.50 per patient-visit.Administrative expenses should be $2,500 per month plus $0.30 per patient-visit.The clinic reported the following actual results for February: Required:
Prepare the clinic's flexible budget performance report for February.Label each variance as favorable (F) or unfavorable (U).

Question

Vernon Clinic uses patient-visits as its measure of activity.During February,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 2,800 patient-visits.The clinic bases its budgets on the following information: Revenue should be $30.20 per patient-visit.Personnel expenses should be $20,600 per month plus $9.70 per patient-visit.Medical supplies should be $1,400 per month plus $5.40 per patient-visit.Occupancy expenses should be $5,700 per month plus $1.50 per patient-visit.Administrative expenses should be $2,500 per month plus $0.30 per patient-visit.The clinic reported the following actual results for February:  Required:
Prepare the clinic's flexible budget performance report for February.Label each variance as favorable (F) or unfavorable (U).

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The Answer of Vernon Clinic uses patient-visits as its measure of activity.During February,the clinic budgeted for 3,100 patient-visits,but its actual level of activity was 2,800 patient-visits.The clinic bases its budgets on the following information: Revenue should be $30.20 per patient-visit.Personnel expenses should be $20,600 per month plus $9.70 per patient-visit.Medical supplies should be $1,400 per month plus $5.40 per patient-visit.Occupancy expenses should be $5,700 per month plus $1.50 per patient-visit.Administrative expenses should be $2,500 per month plus $0.30 per patient-visit.The clinic reported the following actual results for February:  Required:
Prepare the clinic's flexible budget performance report for February.Label each variance as favorable (F) or unfavorable (U).

Vernon Clinic Uses Patient-Visits as Its Measure of Activity