Rothrock Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,400 patient-visits,but its actual level of activity was 3,200 patient-visits.The clinic bases its budgets on the following information: Revenue should be $26.20 per patient-visit.Personnel expenses should be $28,200 per month plus $6.70 per patient-visit.Medical supplies should be $1,500 per month plus $3.30 per patient-visit.Occupancy expenses should be $6,800 per month plus $1.00 per patient-visit.Administrative expenses should be $5,000 per month plus $0.20 per patient-visit.The clinic reported the following actual results for December: Required:
Prepare a report showing the clinic's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Question

Rothrock Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,400 patient-visits,but its actual level of activity was 3,200 patient-visits.The clinic bases its budgets on the following information: Revenue should be $26.20 per patient-visit.Personnel expenses should be $28,200 per month plus $6.70 per patient-visit.Medical supplies should be $1,500 per month plus $3.30 per patient-visit.Occupancy expenses should be $6,800 per month plus $1.00 per patient-visit.Administrative expenses should be $5,000 per month plus $0.20 per patient-visit.The clinic reported the following actual results for December:  Required:
Prepare a report showing the clinic's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Rothrock Clinic uses patient-visits as its measure of activity.During December,the clinic budgeted for 3,400 patient-visits,but its actual level of activity was 3,200 patient-visits.The clinic bases its budgets on the following information: Revenue should be $26.20 per patient-visit.Personnel expenses should be $28,200 per month plus $6.70 per patient-visit.Medical supplies should be $1,500 per month plus $3.30 per patient-visit.Occupancy expenses should be $6,800 per month plus $1.00 per patient-visit.Administrative expenses should be $5,000 per month plus $0.20 per patient-visit.The clinic reported the following actual results for December:  Required:
Prepare a report showing the clinic's revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Rothrock Clinic Uses Patient-Visits as Its Measure of Activity