Febbo Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 3,200 patient-visits, but its actual level of activity was 3,000 patient-visits. Revenue should be $54.00 per patient-visit. Personnel expenses should be $39,400 per month plus $16.70 per patient-visit. Medical supplies should be $1,300 per month plus $10.90 per patient-visit. Occupancy expenses should be $11,600 per month plus $2.00 per patient-visit. Administrative expenses should be $5,400 per month plus $0.30 per patient-visit.
Required:
Prepare a report showing the clinic's activity variances for February. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Question

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The Answer of Febbo Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 3,200 patient-visits, but its actual level of activity was 3,000 patient-visits. Revenue should be $54.00 per patient-visit. Personnel expenses should be $39,400 per month plus $16.70 per patient-visit. Medical supplies should be $1,300 per month plus $10.90 per patient-visit. Occupancy expenses should be $11,600 per month plus $2.00 per patient-visit. Administrative expenses should be $5,400 per month plus $0.30 per patient-visit.
Required:
Prepare a report showing the clinic's activity variances for February. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Febbo Clinic Bases Its Budgets on the Activity Measure Patient-Visits