Best Health Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Fixed clement per month Variable element per client-visit
Revenue - $27.30
Personnel expenses.. $23,000 $8.50
Medical supplies 500 4.30
Occupancy expenses 7,400 0.80
Administrative expenses... 2,500 0.30
Total expenses $33,400 $13.90
Actual results for January:
Revenue.. $89,667
Personnel expenses ... $50,445
Medical supplies $14,767
Occupancy expenses... $9,942
Administrative expenses ... $3,387
Required:
1. Prepare a flexible budget performance report for Best Health Clinic for the month of January.

Answer is explained below. If you face difficulty then please see attached file.

Explanation:

ParticularsCost formulaActualSpending variance  Flexible budgetActivity variancePlanning budget

Patients  3290  3290  3300

Revenue27.30q89667150U89817273U90090

Expenses        

Personal expenses23000+8.50q50445520F5096585F51050

Medical supplies500+4.30q14767120U1464743F14690

Occupancy expense7400+.80q994290F100328F10040

Administrative expense2500+.30q3387100F34873F3490

Total expense  78541590F79131  79270

Net income  11126440F10686134U10820

Flexible Budget              cost formula   flexible budget Actual cost variance

                                                                at 3,290 visits

Revenue                             $27.30        $89,817              $89,667       $150(U)

Personnel expense           $8.50          $27,965             $50,445      $22,840(U)

Medical supplies               $4.30          $14,147                $14,767        $620(U

Occupancy expenses      $0.80          $2,632                $9,942        $7,310 (U)

Admin expenses              $0.30          $987                    $3,387       $2,400(U)

Profit                                 $13.40         $44,086              $11,126      $32,960(U)

Explanation:

U means Unfavorable Variance

Getting less revenue than planned is an Unfavorable variance

Spending more cost than planned is an Unfavorable variance

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total

b is the correct answer