Toadvine Clinic uses patient-visits as its measure of activity. During April, the clinic budgeted for 3,800 patient-visits, but its actual level of activity was 3,400 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $39.70q
Personnel expenses: $38,700 + $11.50q
Medical supplies: $1,000 + $7.25q
Occupancy expenses: $11,700 + $1.20q
Administrative expenses: $6,700 + $0.30q
The clinic reported the following actual results for April:
|
Revenue
|
$132,280
|
|
Personnel expenses
|
$76,500
|
|
Medical supplies
|
$26,300
|
|
Occupancy expenses
|
$16,210
|
|
Administrative expenses
|
$7,620
|
Required: (Please show all work)
Prepare a report showing the clinic's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U).