Tsui Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Tsui Clinic uses patient-visits as its measure of activity. During November, the clinic budgeted for 3,400 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic bases its budgets on the following information: Revenue should be $30.00 per patient-visit. Personnel expenses should be $30,200 per month plus $7.70 per patient-visit. Medical supplies should be $1,600 per month plus $5.20 per patient-visit. Occupancy expenses should be $7,400 per month plus $1.00 per patient-visit. Administrative expenses should be $3,900 per month plus $0.20 per patient-visit. 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).