Touro Dental Clinic uses patient-visits as its measure of activity. During January, the clinic budgeted for 3,600 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: Revenue: $39.70q Personnel expenses: $38,700 + $11.50q Medical supplies: $1,000 + $7.30q Occupancy expenses: $11,700 + $1.30q Administrative expenses: $6,700 + $0.30q The clinic reported the following actual results for January: Revenue - $132,280 Personnel expenses - 76,500 Medical supplies - 26,300 Rent expenses - 16,310 Administrative expenses - 7,620
Touro Dental Clinic uses patient-visits as its measure of activity. During January, the clinic budgeted for 3,600 patient-visits, but its actual level of activity was 3,500 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $39.70q
Personnel expenses: $38,700 + $11.50q
Medical supplies: $1,000 + $7.30q
Occupancy expenses: $11,700 + $1.30q
Administrative expenses: $6,700 + $0.30q
The clinic reported the following actual results for January:
Revenue - $132,280
Personnel expenses - 76,500
Medical supplies - 26,300
Rent expenses - 16,310
Administrative expenses - 7,620
Required:
Prepare a report showing the clinic's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U). Fill in all lines.
actual flexible rev/spending results
patient visits
Revenue
expenses:
personnel
medical supplies
rent expenses
administrative
total expenses
net operating income
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