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).