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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).
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