“Flexible Budget Performance Report for Smith Clinic: February 28”

Instructions
For this assignment, complete the following problem.
Smith Clinic uses patient-visits as its measure of activity. The clinic has provided the following report:
Smith Clinic
Comparison of  Actual Results to Planning Budget
For the Month Ended February 28
Actual Results
Planning Budget
Variances
Patient-visits……………………………………………..
2,000
2,100
Revenue ($53.90q)…………………………………….
$107,880
$113,190
$5,310
U
Expenses:
Personnel expenses ($26,100 + $19.20q)…….
62,840
66,420
3,580
F
Medical supplies ($1,400 + $7.20q)…………….
16,250
16,520
270
F
Occupancy expenses ($6,700 + $2.60q)………
11,970
12,160
190
F
Administrative expenses ($4,300 + $0.20q)…..
4,710
4,720
10
F
Total expense……………………………………………
95,770
99,820
4,050
F
Net operating income………………………………….
$ 12,110
$ 13,370
$1,260
U
Required:
Prepare the clinic’s flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).