Lasserre Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Lasserre Clinic uses patient-visits as its measure of activity. During November, the clinic budgeted for 2,800 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $50.40q
Personnel expenses: $36,200 + $15.60q
Medical supplies: $1,500 + $8.80q
Occupancy expenses: $8,700 + $2.80q
Administrative expenses: $4,300 + $0.40q
The clinic reported the following actual results for November:
Required:
Prepare the clinic's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).