Fongeallaz Clinic Bases Its Budgets on the Activity Measure Patient-Visits

Essay

Fongeallaz Clinic bases its budgets on the activity measure patient-visits.During January,the clinic planned for 2,300 patient-visits,but its actual level of activity was 2,100 patient-visits.Revenue should be $52.50 per patient-visit.Personnel expenses should be $34,100 per month plus $15.10 per patient-visit.Medical supplies should be $1,600 per month plus $8.40 per patient-visit.Occupancy expenses should be $9,400 per month plus $1.90 per patient-visit.Administrative expenses should be $3,500 per month plus $0.10 per patient-visit.
Required:
Prepare a report showing the clinic's activity variances for January.Indicate in each case whether the variance is favorable (F)or unfavorable (U).