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

Essay

Mulvehill Clinic bases its budgets on the activity measure patient-visits. During June, the clinic planned for 3,000 patient-visits, but the actual level of activity was 3,400 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare a report showing the clinic's activity variances for June. Indicate in each case whether the variance is favorable (F) or unfavorable (U).