During June, Montera Clinic budgeted for 3,800 patient-visits, but its actual level of activity was 3,400 patient-visits. Revenue should be $25.20 per patient-visit. Personnel expenses should be $22,600 per month plus $7.00 per patient-visit. Medical supplies should be $800 per month plus $4.80 per patient-visit. Occupancy expenses should be $6,900 per month plus $0.90 per patient-visit. Administrative expenses should be $4,800 per month plus $0.40 per patient-visit.Required:Prepare the clinic's flexible budget for June based on the actual level of activity for the month.
What will be an ideal response?
| Montera Clinic | ||
| Flexible Budget | ||
| For the Month Ended June 30 | ||
| Actual patient-visits (q) | 3,400 | |
| Revenue ($25.20q) | $ | 85,680 |
| Expenses: | ||
| Personnel expenses ($22,600 + $7.00q) | 46,400 | |
| Medical supplies ($800 + $4.80q) | 17,120 | |
| Occupancy expenses ($6,900 + $0.90q) | 9,960 | |
| Administrative expenses ($4,800 + $0.40q) | 6,160 | |
| Total expense | 79,640 | |
| Net operating income | $ | 6,040 |
You might also like to view...
Net income for the year was $29,500 . Accounts receivable increased $2,500, and accounts payable increased$5,400 . There were no other changes in noncash current assets and liabilities. Under the indirect method, the cashflow from operations is $32,400
a. True b. False Indicate whether the statement is true or false
What do principle-based, ethical frameworks address?
What will be an ideal response?
Describe the key drivers of how consumers choose between personal, impersonal, and self-service channels
What will be an ideal response?
A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year:?Debit CreditCash sales…………………………………..?$188,000Credit sales…………………………………?275,000Accounts receivable………………………..$76,000?Allowance for doubtful accounts…………..?1,000Prepare the adjusting entry to estimate bad debts assuming bad debts are estimated to be 2.5% of credit sales.
What will be an ideal response?