Mcgannon Clinic Uses Patient-Visits as Its Measure of Activity

question 107

Essay

Mcgannon Clinic uses patient-visits as its measure of activity. During November, the clinic budgeted for 3,700 patient-visits, but its actual level of activity was 4,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $23.90q
Personnel expenses: $20,800 + $7.90q
Medical supplies: $800 + $3.50q
Occupancy expenses: $6,100 + $1.30q
Administrative expenses: $3,100 + $0.10q
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:

Blaming Others

The act of attributing fault or responsibility for mistakes or failures to other people instead of oneself.

Political Skill

The ability to effectively understand others in the organization and use such knowledge to influence others to act in ways that enhance personal and/or organizational objectives.

Comprehending Others

The process of understanding individuals' thoughts, feelings, and behaviors within the context of their experiences and communications.

Political Skill

The ability to effectively understand others at work and to use such knowledge to influence others to act in ways that enhance one’s personal or organizational objectives.