Asked by Daniel Juarez on May 13, 2024
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During June, Montera Clinic budgeted for 3,800 patient-visits, but its actual level of activity was 3,400 patient-visits.Revenue should be $25.20 per patient-visit.Personnel expenses should be $22,600 per month plus $7.00 per patient-visit.Medical supplies should be $800 per month plus $4.80 per patient-visit.Occupancy expenses should be $6,900 per month plus $0.90 per patient-visit.Administrative expenses should be $4,800 per month plus $0.40 per patient-visit.
Required:
Prepare the clinic's flexible budget for June based on the actual level of activity for the month.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate budgeting in variable cost scenarios.
Patient-Visits
A measure used in healthcare to denote the number of times patients see a healthcare provider or visit a healthcare facility.
Revenue
The sum of money a company earns from its sales of products or services before deducting any costs.
- Diagnose and calculate the divergence between factual outcomes and projected financial plans, marking both favorable and unfavorable distinctions.
- Apply budget calculations to form budgets determined by activity measurements, such as the quantity of customers served and visits by patients.
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Learning Objectives
- Diagnose and calculate the divergence between factual outcomes and projected financial plans, marking both favorable and unfavorable distinctions.
- Apply budget calculations to form budgets determined by activity measurements, such as the quantity of customers served and visits by patients.
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