Asked by Allyssa Wilson on Apr 24, 2024
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Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $55.90 per patient-visit. Personnel expenses should be $35,700 per month plus $15.80 per patient-visit. Medical supplies should be $2,000 per month plus $11.20 per patient-visit. Occupancy expenses should be $8,400 per month plus $2.00 per patient-visit. Administrative expenses should be $3,900 per month plus $0.10 per patient-visit.The clinic reported the following actual results for November:
Required:Prepare a report showing the clinic's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U).
Patient-visits
The total number of times patients visit a healthcare provider or facility for services.
Revenue
The total amount of income generated by the sale of goods or services related to a company's primary operations, before any expenses are deducted.
Spending Variances
Differences between the budgeted or planned amounts of spending and the actual amounts spent.
- Determine the gaps between expected and actual budget values, discerning whether they are propitious or adverse.
- Scrutinize financial health utilizing flexible budget reports.
- Leverage formulas pertinent to costs and revenues to compile budget analyses.
Verified Answer
Learning Objectives
- Determine the gaps between expected and actual budget values, discerning whether they are propitious or adverse.
- Scrutinize financial health utilizing flexible budget reports.
- Leverage formulas pertinent to costs and revenues to compile budget analyses.
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