Stailey Clinic Uses Patient-Visits as Its Measure of Activity

question 215

Essay

Stailey Clinic uses patient-visits as its measure of activity.During September,the clinic budgeted for 3,200 patient-visits,but its actual level of activity was 2,800 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:

Revenue: $34.90q
Personnel expenses: $27,300 + $10.30q
Medical supplies: $1,400 + $6.50q
Occupancy expenses: $6,000 + $1.80q
Administrative expenses: $5,300 + $0.40q
The clinic reported the following actual results for September: Required:
Prepare a report showing the clinic's revenue and spending variances for September.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Case

An instance or occurrence of a particular situation or example being investigated or examined.

Informed Consent

A process ensuring that a person fully understands the details and implications before agreeing to participate in any procedure or treatment.

Elementary School

An institution for providing child education that comes after preschool and before secondary school, typically for children from the ages of 5 to 11.

Advanced College

An institution of higher education offering undergraduate and postgraduate studies beyond the standard college level.