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Toadvine Clinic uses patient-visits as its measure of activity. During April, the clinic budgeted for 3,800 patient-visits, but its actual level of activity was 3,400 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits:
Revenue: $39.70qPersonnel expenses: $38,700 + $11.50qMedical supplies: $1,000 + $7.25qOccupancy expenses: $11,700 + $1.20qAdministrative expenses: $6,700 + $0.30q
The clinic reported the following actual results for April:
Revenue
$132,280
Personnel expenses
$76,500
Medical supplies
$26,300
Occupancy expenses
$16,210
Administrative expenses
$7,620
Required: (Please show all work)
Prepare a report showing the clinic's revenue and spending variances for April. Label each variance as favorable (F) or unfavorable (U).
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