Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $62.90 per patient-visit. Personnel expenses should be $36,400 per month plus $16.50 per patient-visit. Medical supplies should be $2,700 per month plus $11.90 per patient-visit. Occupancy expenses should be $9,100 per month plus $5.50 per patient-visit. Administrative expenses should be $4,600 per month plus $3.60 per patient-visit. The clinic reported the following actual results for November: Patient-visits Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Required: 2,870 $ 199,240 $ 89,320 $ 40,240 $ 19,350 $ 9,750 Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Laizure Clinic Revenue and Spending Variances For the Month Ended November 30 Patient-visits Revenue Expenses: Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expense Net operating income Actual Results Flexible Budget Revenue and Spending Variances 2,870 2,870
Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $62.90 per patient-visit. Personnel expenses should be $36,400 per month plus $16.50 per patient-visit. Medical supplies should be $2,700 per month plus $11.90 per patient-visit. Occupancy expenses should be $9,100 per month plus $5.50 per patient-visit. Administrative expenses should be $4,600 per month plus $3.60 per patient-visit. The clinic reported the following actual results for November: Patient-visits Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Required: 2,870 $ 199,240 $ 89,320 $ 40,240 $ 19,350 $ 9,750 Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Laizure Clinic Revenue and Spending Variances For the Month Ended November 30 Patient-visits Revenue Expenses: Personnel expenses Medical supplies Occupancy expenses Administrative expenses Total expense Net operating income Actual Results Flexible Budget Revenue and Spending Variances 2,870 2,870
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should
be $62.90 per patient-visit. Personnel expenses should be $36,400 per month plus $16.50 per patient-visit. Medical supplies should
be $2,700 per month plus $11.90 per patient-visit. Occupancy expenses should be $9,100 per month plus $5.50 per patient-visit.
Administrative expenses should be $4,600 per month plus $3.60 per patient-visit.
The clinic reported the following actual results for November:
Patient-visits
Revenue
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Required:
2,870
$ 199,240
$ 89,320
$ 40,240
$ 19,350
$ 9,750
Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or
unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect
(i.e., zero variance). Input all amounts as positive values.)
Laizure Clinic
Revenue and Spending Variances
For the Month Ended November 30
Patient-visits
Revenue
Expenses:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expense
Net operating income
Actual Results
Flexible Budget
Revenue and Spending
Variances
2,870
2,870
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