Tsui Clinic Uses Patient-Visits as Its Measure of Activity

question 33

Essay

Tsui Clinic uses patient-visits as its measure of activity.During November,the clinic budgeted for 3,400 patient-visits,but its actual level of activity was 2,900 patient-visits.The clinic bases its budgets on the following information: Revenue should be $30.00 per patient-visit.Personnel expenses should be $30,200 per month plus $7.70 per patient-visit.Medical supplies should be $1,600 per month plus $5.20 per patient-visit.Occupancy expenses should be $7,400 per month plus $1.00 per patient-visit.Administrative expenses should be $3,900 per month plus $0.20 per patient-visit.The clinic reported the following actual results for November: Required:
Prepare the clinic's flexible budget performance report for November.Label each variance as favorable (F)or unfavorable (U).

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Definitions:

Spoils System

A practice where government jobs are given to political supporters and friends, often criticized for rewarding loyalty over merit.

Public Office

An elected or appointed position within the government where individuals are chosen to represent, govern, or administrate public policy and services.

Abraham Lincoln

The 16th President of the United States who served from 1861 to 1865 and led the country through the Civil War while abolishing slavery with the Emancipation Proclamation and the 13th Amendment.

Popular Sovereignty

The concept that a state and its government's power is established and maintained by the approval of its citizens, via their chosen representatives.