Braseth Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Braseth Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $39.90 per patient-visit. Personnel expenses should be $35,400 per month plus $13.00 per patient-visit. Medical supplies should be $1,100 per month plus $4.90 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $4,700 per month plus $0.20 per patient-visit.
The clinic reported the following actual results for January:
Required:
Prepare a report showing the clinic's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).