Problem: Alto Clinic uses patient-visits as its measure of activity. The clinic has provided the following report:
Variance Report
|
|
|
|
Plan
|
Actual
|
Variance
|
|
|
Patient visits
|
|
|
2,600
|
2,700
|
100
|
F
|
|
|
Fixed
|
Variable
|
|
|
|
|
|
Revenue
|
$ -
|
$ 52.90
|
137,540
|
145,190
|
7,650
|
F
|
|
Expenses:
|
|
|
|
|
|
|
|
Personnel expenses
|
$ 35,100
|
$ 17.40
|
80,340
|
79,610
|
730
|
F
|
|
Medical supplies
|
$ 1,100
|
$ 6.40
|
17,740
|
18,660
|
(920)
|
U
|
|
Occupancy expenses
|
$ 9,700
|
$ 2.30
|
15,680
|
16,680
|
(1,000)
|
U
|
|
Administrative expenses
|
$ 5,200
|
$ 0.30
|
5,980
|
5,880
|
100
|
F
|
|
Tot al expense
|
|
|
119,740
|
120,830
|
(1,090)
|
U
|
|
Net Operating Income
|
|
|
17,800
|
24,360
|
6,560
|
F
|
Requirements:
Prepare the clinic's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).
Total Variance Spending Variance Activity Variance
Net Operating Income