Painter
(B)
Kindness Medical Centre uses patient-visits as its measure of activity. During May, the centre budgeted
for 3,800 patient-visits, but its actual level of activity was 4,100 patient-visits. The centre has provided
the following data concerning the formulas used in its budgeting and its actual results for May.
Data used in budgeting:
Fixed
Variable
element
element per
per month
patient-visit
Revenue.....................................
$30.80
Personnel expenses........................ $26,000
Medical supplies........................... $1,800
Occupancy expenses....................... $7,900
Administrative expenses................... $6,000
Actual results for May:
Revenue..................................... $125,710
Personnel expenses........................ $66,800
Medical supplies........................... $24,940
Occupancy expenses....................... $11,560
Administrative expenses................... $7,620
REQUIRED
Prepare a report showing the centre's revenue and spending variances for May. Label each variance as
favorable (F) or unfavorable (U).
(8 marks)
(Total: 20 marks)