Cayouette Clinic Uses Patient-Visits as Its Measure of Activity

question 97

Essay

Cayouette Clinic uses patient-visits as its measure of activity.During February,the clinic budgeted for 2,400 patient-visits,but its actual level of activity was 2,700 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:

Revenue: $53.80q
Personnel expenses: $32,000 + $16.60q
Medical supplies: $700 + $8.80q
Occupancy expenses: $10,400 + $1.90q
Administrative expenses: $5,500 + $0.20q

The clinic reported the following actual results for February: Required:
Prepare the clinic's flexible budget performance report for February.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Conduct

The manner in which a person behaves, especially in a particular setting or context.

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A widely cited legal case involving offer and acceptance in contract law.

Valid Offer

An expression of willingness to enter into a contract on specified terms, made with the intention that it will become binding as soon as it is accepted by the person to whom it is addressed.

Invitation

A formal or polite request to attend an event or participate in something.