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

question 425

Essay

Poling 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 4,000 patient-visits. Revenue should be $30.40 per patient-visit. Personnel expenses should be $30,000 per month plus $9.30 per patient-visit. Medical supplies should be $1,000 per month plus $3.70 per patient-visit. Occupancy expenses should be $9,300 per month plus $0.80 per patient-visit. Administrative expenses should be $4,300 per month plus $0.30 per patient-visit.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).

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Definitions:

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that employees have within their work environment.

Workforce Size

Refers to the total number of employees (full-time, part-time, and contract) that a company employs at any given time to meet its business needs.

Level Scheduling

A technique in production planning aimed at maintaining a steady rate of output, workforce levels, and material usage over time.

Seasonal Demand Fluctuations

Variations in product or service demand corresponding to season or specific time periods.