Mulberry Clinic Uses Patient-Visits as Its Measure of Activity

question 5

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:

American Mutoscope

An early motion picture company and the creator of the Mutoscope, a device for viewing moving pictures by flipping through a series of photographs.

Biograph Company

An early American motion picture company known as one of the most significant and influential studios in the film industry's formative years.

Panning-Head Tripod

A type of tripod head that allows for smooth horizontal camera movements, commonly used in video and film production for stable panning shots.

Georges Méliès

A French illusionist and filmmaker famous for his creative special effects and storytelling in early cinema, notably in "A Trip to the Moon."