Mulberry Clinic Uses Patient-Visits as Its Measure of Activity

question 59

Essay

Mulberry Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $48.70 per patient-visit. Personnel expenses should be $27,600 per month plus $14.70 per patient-visit. Medical supplies should be $1,000 per month plus $10.10 per patient-visit. Occupancy expenses should be $9,500 per month plus $2.40 per patient-visit. Administrative expenses should be $3,800 per month plus $0.10 per patient-visit.
The clinic reported the following actual results for August: Required:
Prepare a report showing the clinic's revenue and spending variances for August. Label each variance as favorable (F) or unfavorable (U).

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Definitions:

Traditional Quality Assurance

Conventional methods and procedures designed to ensure that products or services meet specific quality standards prior to their delivery.

Culture of Safety

An organizational work environment where safety concerns can be raised openly, and mistakes lead to learning rather than punishment.

Process Teams

Process teams are groups of individuals who work together specifically to analyze, manage, and improve business processes and workflows within an organization.

Day-To-Day Operations

The regular activities and routines that a business or organization conducts on a daily basis to maintain its function.