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

question 354

Essay

Quesnel Clinic bases its budgets on the activity measure patient-visits. During February, the clinic planned for 3,700 patient-visits, but its actual level of activity was 3,900 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 February. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Sums of Squared Deviations

The total of the squared differences between each observation in a data set and the mean of that data set, used in various statistical methods to measure variability.

Sample Mean

The average value calculated from a subset (sample) of a population.

ANOVA Table

A table used to summarize the results and findings of an Analysis of Variance, displaying sources of variance, degrees of freedom, and significance levels.

Mean Square

A statistical measure used in variance analysis, representing the average of squared differences from the mean.