Question

aizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $64.90 per patient-visit. Personnel expenses should be $36,600 per month plus $16.70 per patient-visit. Medical supplies should be $2,900 per month plus $12.10 per patient-visit. Occupancy expenses should be $9,300 per month plus $6.50 per patient-visit. Administrative expenses should be $4,800 per month plus $4.60 per patient-visit.

The clinic reported the following actual results for November:

Patient-visits		2,890
Revenue	$	209,240
Personnel expenses	$	91,320
Medical supplies	$	41,840
Occupancy expenses	$	20,950
Administrative expenses	$	11,350

Required:

Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Laizure Clinic
Revenue and Spending Variances
For the Month Ended November 30
	Actual Results	Flexible Budget	Revenue and Spending Variances
Patient-visits	2,890	2,890
Revenue
Expenses:
Personnel expenses
Medical supplies
Occupancy expenses
Administrative expenses
Total expense
Net operating income

Answer 1

Laizure Clinic
Revenue and Spending Variances
For the Month Ended November 30
	Actual Results	Flexible Budget	Revenue and Spending Variances
Patient-visits	2,890	2,890
Revenue	209240	187561	21679	Favorable
Expenses:
Personnel expenses	91320	84863	6457	Unfavorable
Medical supplies	41840	37869	3971	Unfavorable
Occupancy expenses	20950	28085	7135	Favorable
Administrative expenses	11350	18094	6744	Favorable
Total expense	165460	168911	3451	Favorable
Net operating income	43780	18650	25130	Favorable