Laizure Clinic Uses Patient-Visits as Its Measure of Activity

question 54

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:

Covariances

A measure of how two variables move in relation to each other, indicating the degree to which they vary together.

Evolution of Beta

Refers to how the beta value of a security, indicating its volatility relative to the market, changes over time.

Forecast

A prediction or estimate of future events or trends, especially related to economic or weather conditions.

Last Year

A term that refers to the immediate past calendar year or the most recent complete fiscal year.