Laizure Clinic Uses Patient-Visits as Its Measure of Activity

question 172

Essay

Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit. Personnel expenses should be $35,700 per month plus $15.80 per patient-visit. Medical supplies should be $2,000 per month plus $11.20 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $3,900 per month plus $0.10 per patient-visit.The clinic reported the following actual results for November:
Required:Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Orbicularis Oculi

A muscle surrounding the eye, responsible for closing the eyelids and enabling blinking and winking.

Inferior Oblique

A muscle in the orbit of the eye that contributes to lateral rotation and elevation of the eyeball.

Eyeball Movement

The motion of the eyes, controlled by the ocular muscles, allowing for visual tracking and focusing.

Fibrous Tunic

The outermost layer of the eye, consisting of the sclera and cornea, it serves to protect the eye and maintain its shape.