II. Problems (56 points in total) 1. Cooper Hospital uses patient-visits as its
ID: 2601524 • Letter: I
Question
II. Problems (56 points in total) 1. Cooper Hospital uses patient-visits as its measure of activity. During May, the hospital budgeted for 2,700 patient-visits, but its actual level of activity was The clinic uses the following revenue and cost formulas in its number of patient-visits: Revenue: $49.60q Personnel ex Medical supplies: $700+$9.60q Occupancy expenses: S10,000+$2.00q Administrative expenses: $7.000+$0.20q Required: 3,200 patient-visits. budgeting, where q is the penses: $31.200+ $15.10q the hospital's (a). Planning budget and (b) Flexible budget for May; and (c) calculate activity vari ance. Label each variance as favorable (F) or unfavorable (U) (8 points)Explanation / Answer
Revenue: $49.60q
Revenue: $49.60q
Revenue: $49.60q
Coopar Hospital Planning Budget For the Month Ended May Number of patient visits (q) 2700Revenue: $49.60q
$133,920 Personnel expenses: $31,200 + $15.10q 71,970 Medical supplies: $700 + $9.60q 26,620 Occupancy expenses: $10,000 + $2.00q 15,400 Administrative expenses: $7,000 + $0.20q 7,540 Total income $ 12,390