Ruiz Clinic bases its budgets on the activity measure patient-visits. During July, the clinic planned for an activity level of 3,700 patient-visits, but the activity level was actually 3,600 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Fixed element per monthVariable element per patient-visitRevenue - $22.80 Personnel expenses$24,200 $6.80 Medical supplies$1,200 $3.30 Occupancy expenses$5,000 $0.80 Administrative expenses$3,100 $0.30 Required:Prepare the clinic's flexible budget for July based on the actual level of activity for the month.
What will be an ideal response?
| Ruiz Clinic | ||
| Flexible Budget | ||
| For the Month Ended July 31 | ||
| Actual patient-visits (q) | 3,600 | |
| Revenue ($22.80q) | $ | 82,080 |
| Expenses: | ||
| Personnel expenses ($24,200 + $6.80q) | 48,680 | |
| Medical supplies ($1,200 + $3.30q) | 13,080 | |
| Occupancy expenses ($5,000 + $0.80q) | 7,880 | |
| Administrative expenses ($3,100 + $0.30q) | 4,180 | |
| Total expense | 73,820 | |
| Net operating income | $ | 8,260 |
You might also like to view...
The interest cost component for other postretirement benefits is determined using
a. the settlement rate of interest. b. the rate of return on high quality fixed-income investments with cash flows matching the timing and amounts of expected benefit payments. c. both of these. d. neither of these.
A _________ is an extension of the parent company, not a separate legal entity.
Fill in the blank(s) with the appropriate word(s).
When conducting business in China, one must realize that individualism is highly prized.
Answer the following statement true (T) or false (F)
Money is automatically drawn from the buyer's account and deposited into the supplier's account in an electronic funds transfer (EFT)
Indicate whether the statement is true or false.