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

Essay

Ochwat Clinic bases its budgets on the activity measure patient-visits. During July, the clinic planned for 3,600 patient-visits, but its actual level of activity was 4,100 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 July. Indicate in each case whether the variance is favorable (F) or unfavorable (U).