Reference no: EM13596996

Gasco Clinic uses patient-visits as its measure of activity. During August, the clinic budgeted for 2,000 patient-visits, but its actual level of activity was 2,100 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:

Revenue: $62.90q
Personnel expenses: $28,500 + $20.40q
Medical supplies: $1,400 + $9.90q
Occupancy expenses: $8,200 + $3.30q
Administrative expenses: $4,000 + $0.40q

The clinic reported the following actual results for August:
Revenue.........................$129450
Personnel expenses.............74770
Medical supplies...............22940
Occupancy expenses..........14640
Administrative expenses....4740

Required: Prepare a report showing the clinic's revenue and spending variances for August. Label each variance as favorable (F) or unfavorable (U).