Gasco Clinic Uses Patient-Visits as Its Measure of Activity

question 192

Essay

Gasco Clinic uses patient-visits as its measure of activity.During August,the clinic budgeted for 2,000 patient-visits,but its actual level of activity was 2,100 patient-visits.The clinic uses the following revenue and cost formulas in its budgeting,where q is the number of patient-visits:
Revenue: $62.90q
Personnel expenses: $28,500 + $20.40q
Medical supplies: $1,400 + $9.90q
Occupancy expenses: $8,200 + $3.30q
Administrative expenses: $4,000 + $0.40q
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:

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Psychology

The scientific study of the mind and behavior, exploring various aspects like perception, cognition, emotion, and motivation.

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A unit of measure in the metric system equal to one thousandth of a kilogram used primarily for quantifying mass or weight.

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