Kestner Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Kestner Clinic uses patient-visits as its measure of activity. During September, the clinic budgeted for 3,000 patient-visits, but its actual level of activity was 2,900 patient-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting: Actual results for September: Required:
Prepare the clinic's flexible budget performance report for September. Label each variance as favorable (F) or unfavorable (U).