Injured Jets Clinic uses patlent-visits as Its measure of activity. The clinic bases Its budgets on the following Information: Revenue should be $67.90 per patlent-visit. Personnel expenses should be $36,900 per month plus $17.00 per patlent-visit. Medical supplles should be $3,200 per month plus $12.40 per patlent-visit. Ocupancy expenses should be $9,600 per month plus $8.00 per patlent- visit. Administrative expenses should be $5,100 per month plus $6.10 per patlent-vist. The clinic reported the following actual results for November: Patient-visits Revenue 2,920 $224, 240 $ 94, 320 $ 44, 240 $ 23,350 $ 13,750 Personnel expenses Medical supplies Occupancy expenses Administrative expenses Requlred: Prepare a report showing the çlinic's revenue and spending varlances for November. Label each varlance as favorable (F) or unfavorable (U). (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Injured Jets Clinic Revenue and Spending Variance For the Month Ended November 30 Flexible Revenue and Actual Results Budget Spending Variances Patient-visits 2,920 2.920 Revenue Expenses: Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expense Net operating income
Injured Jets Clinic uses patlent-visits as Its measure of activity. The clinic bases Its budgets on the following Information: Revenue should be $67.90 per patlent-visit. Personnel expenses should be $36,900 per month plus $17.00 per patlent-visit. Medical supplles should be $3,200 per month plus $12.40 per patlent-visit. Ocupancy expenses should be $9,600 per month plus $8.00 per patlent- visit. Administrative expenses should be $5,100 per month plus $6.10 per patlent-vist. The clinic reported the following actual results for November: Patient-visits Revenue 2,920 $224, 240 $ 94, 320 $ 44, 240 $ 23,350 $ 13,750 Personnel expenses Medical supplies Occupancy expenses Administrative expenses Requlred: Prepare a report showing the çlinic's revenue and spending varlances for November. Label each varlance as favorable (F) or unfavorable (U). (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.) Injured Jets Clinic Revenue and Spending Variance For the Month Ended November 30 Flexible Revenue and Actual Results Budget Spending Variances Patient-visits 2,920 2.920 Revenue Expenses: Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with a few problems from the past chapters im still stuck with.
Transcribed Image Text:# Injured Jets Clinic Financial Report Analysis
## Overview
Injured Jets Clinic utilizes patient-visits as its activity measure. The clinic's budgeting process is based on the following elements:
- **Revenue**: Targeted at $67.90 per patient-visit.
- **Personnel Expenses**: $36,900 per month plus $17.00 per patient-visit.
- **Medical Supplies**: $3,200 per month plus $12.40 per patient-visit.
- **Occupancy Expenses**: $9,600 per month plus $8.00 per patient-visit.
- **Administrative Expenses**: $5,100 per month plus $6.10 per patient-visit.
## Actual Results for November
The clinic reported the following results for November:
- **Patient-visits**: 2,920
- **Revenue**: $224,240
- **Personnel Expenses**: $94,250
- **Medical Supplies**: $43,348
- **Occupancy Expenses**: $32,420
- **Administrative Expenses**: $13,750
## Requirement
You are asked to prepare a report indicating the clinic’s revenue and spending variances for November. Each variance should be labeled as favorable (F) or unfavorable (U). Specify the effect of each variance using:
- **"F"** for Favorable
- **"U"** for Unfavorable
- **"None"** for No Effect (zero variance)
Ensure all reported amounts are positive values.
## Diagram Explanation
### Revenue and Spending Variances Table
- **Patient-visits**: Both actual and budgeted at 2,920, indicating no variance.
- **Revenue, Expenses, Total Expense, and Net Operating Income**:
- Calculate flexible budget figures based on the provided per-month and per-visit rates.
- Compare actual results to the flexible budget to find variances.
This analysis helps determine operational efficiency and financial management within the clinic for November.
---
For a more detailed financial analysis, ensure to compute exact figures for flexible budgets and compare with actuals to establish precise variances.
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