Question

During September, Monterey Clinic budgeted for 2,200 patient-visits, but its actual level of activity was 2,500 patient visits. revenue should be $49.00 per patient visit. Personnel expenses should be $30,700 per month plus $14.70 per patient visit. Medical supplies should be $1,800 per month plus $6.50 per patient visit. Occupancy expenses should be $7,600 per month plus $1.40 per patient visit. Administrative expenses should be $4,700 per month plus $ 0.10 per patient visit. Prepare the clinics flexible budget for September based on the actual level of activity for the month. provide detail.

Answer 1

Ans.	MONTEREY CLINIC
	Flexible Budget
	For the Month Of September
		Amount
	Patients visits	2500
	Revenue	122500
	Expenses:
	Personnel expenses	67450
	Medical supplies	18050
	Occupancy expenses	11100
	Administration expenses	4950
	Total expenses	101550
	Net operating income	20950
	*Calculation of flexible budget:
	Patients visits	2500
	Revenue	49 * 2500
	Expenses:
	Personnel expenses	30700 + (14.70 * 2500)
	Medical supplies	1800 + (6.50 * 2500)
	Occupancy expenses	7600 + (1.40 * 2500)
	Administration expenses	4700 + (0.10 * 2500)
	*Flexible budget is prepared on the basis of actual units.