Bruess Clinic uses patient-visits as its measure of activity. During July, the clinic budgeted for 2,700 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $49.60q
Personnel expenses: $31,200 + $15.10q
Medical supplies: $700 + $9.60q
Occupancy expenses: $10,000 + $2.00q
Administrative expenses: $7,000 + $0.20q
The clinic reported the following actual results for July: Required:
Prepare the clinic's flexible budget performance report for July. Label each variance as favorable (F) or unfavorable (U).

Question

Bruess Clinic uses patient-visits as its measure of activity. During July, the clinic budgeted for 2,700 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $49.60q
Personnel expenses: $31,200 + $15.10q
Medical supplies: $700 + $9.60q
Occupancy expenses: $10,000 + $2.00q
Administrative expenses: $7,000 + $0.20q
The clinic reported the following actual results for July:  Required:
Prepare the clinic's flexible budget performance report for July. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Bruess Clinic uses patient-visits as its measure of activity. During July, the clinic budgeted for 2,700 patient-visits, but its actual level of activity was 3,200 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $49.60q
Personnel expenses: $31,200 + $15.10q
Medical supplies: $700 + $9.60q
Occupancy expenses: $10,000 + $2.00q
Administrative expenses: $7,000 + $0.20q
The clinic reported the following actual results for July:  Required:
Prepare the clinic's flexible budget performance report for July. Label each variance as favorable (F) or unfavorable (U).

Bruess Clinic Uses Patient-Visits as Its Measure of Activity