Furney Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Furney Clinic uses patient-visits as its measure of activity. During May, the clinic budgeted for 3,400 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic bases its budgets on the following information: Revenue should be $38.00 per patient-visit. Personnel expenses should be $36,000 per month plus $10.80 per patient-visit. Medical supplies should be $1,000 per month plus $6.00 per patient-visit. Occupancy expenses should be $9,300 per month plus $2.00 per patient-visit. Administrative expenses should be $5,500 per month plus $0.30 per patient-visit. The clinic reported the following actual results for May:
Required:
Prepare the clinic's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U).