Problem - Seard Clinic uses patient-visits as its measure of activity. The clinic has provided the following report:
|
Variance Report
|
|
|
|
Plan
|
Actual
|
Variance
|
|
Patient-visits
|
|
|
2,000
|
2,400
|
400 F
|
|
Fixed
|
Variable
|
|
|
|
|
Revenue
|
$-
|
$58.10
|
116,200
|
142,080
|
25,880 F
|
|
Expenses:
|
|
|
|
|
|
|
Personnel expenses
|
$30,400
|
$17.40
|
65,200
|
74,250
|
(9,050) U
|
|
Medical supplies
|
$1,300
|
$9.60
|
20,500
|
24,670
|
(4,170) U
|
|
Occupancy expenses
|
$9,000
|
$1.90
|
12,800
|
14,020
|
(1,220) U
|
|
Administrative expenses
|
$6,200
|
$0.30
|
6,800
|
6,860
|
(60) U
|
|
Total expense
|
|
|
105,300
|
119,800
|
(14,500) U
|
|
Net Operating Income
|
|
|
10,900
|
22,280
|
11,380 F
|
Required: Prepare the clinic's flexible budget performance report for December. Label each variance as favorable (F) or unfavorable (U).