Asked by Florence Pochon on Jul 20, 2024
Verified
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.
Revenue
The entire sum of money earned from selling goods or services that are central to a company's main business activities.
Flexible Budget
A budget that adjusts or flexes with changes in the volume or activity level of a company.
Patient-visits
A measure used in healthcare to quantify the number of times patients seek medical services or consultations.
- Understand the process of creating an adaptable budget contingent on real activity rates.
Verified Answer
Learning Objectives
- Understand the process of creating an adaptable budget contingent on real activity rates.
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