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

Essay

Poling Clinic bases its budgets on the activity measure patient-visits. During July, the clinic planned for 3,600 patient-visits, but its actual level of activity was 4,000 patient-visits. Revenue should be $30.40 per patient-visit. Personnel expenses should be $30,000 per month plus $9.30 per patient-visit. Medical supplies should be $1,000 per month plus $3.70 per patient-visit. Occupancy expenses should be $9,300 per month plus $0.80 per patient-visit. Administrative expenses should be $4,300 per month plus $0.30 per patient-visit.Required:Prepare a report showing the clinic's activity variances for July. Indicate in each case whether the variance is favorable (F) or unfavorable (U).