Laizure Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit. Personnel expenses should be $35,700 per month plus $15.80 per patient-visit. Medical supplies should be $2,000 per month plus $11.20 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $3,900 per month plus $0.10 per patient-visit.
The clinic reported the following actual results for November:
Required:
Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U).