Rothrock Clinic Uses Patient-Visits as Its Measure of Activity

Essay

Rothrock Clinic uses patient-visits as its measure of activity. During December, the clinic budgeted for 3,400 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic bases its budgets on the following information: Revenue should be $26.20 per patient-visit. Personnel expenses should be $28,200 per month plus $6.70 per patient-visit. Medical supplies should be $1,500 per month plus $3.30 per patient-visit. Occupancy expenses should be $6,800 per month plus $1.00 per patient-visit. Administrative expenses should be $5,000 per month plus $0.20 per patient-visit. The clinic reported the following actual results for December: Required:
Prepare the clinic's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).