Furney Clinic Uses Patient-Visits as Its Measure of Activity

question 279

Essay

Furney Clinic uses patient-visits as its measure of activity. During May, the clinic budgeted for 3,400 patient-visits, but its actual level of activity was 3,000 patient-visits. The clinic bases its budgets on the following information: Revenue should be $38.00 per patient-visit. Personnel expenses should be $36,000 per month plus $10.80 per patient-visit. Medical supplies should be $1,000 per month plus $6.00 per patient-visit. Occupancy expenses should be $9,300 per month plus $2.00 per patient-visit. Administrative expenses should be $5,500 per month plus $0.30 per patient-visit. The clinic reported the following actual results for May:
Required:
Prepare the clinic's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Marry

The legally or formally recognized union of two people as partners in a personal relationship, traditionally understood as in marriage.

Cohabitation

Living together in a sexually intimate relationship without the legal bonds of marriage.

Monogamous Relationships

Partnerships in which individuals commit to having a romantic or sexual relationship with only one person at a time.

Arranged Marriage

A marriage where partners are selected by individuals other than the ones getting married, often involving family members or marriage brokers.