Subject: acounting Return on investment$BudgetDINKLE AND FRIZELL DENTAL CLINICPreventive ServicesResponsibility ReportFor the Month Ended May 31, 2020%$Actual%$DifferenceFavorable FUnfavorable UNeither Favorablenor Unfavorable N% The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare anincome statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic.Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2020 is shown below.Service revenueVariable costs:Filling materialsNovocainSuppliesDental assistant wagesUtilitiesTotal variable costsFixed costs:Allocated portion of receptionist's salaryDentist salaryEquipment depreciationAllocated portion of building depreciationTotal fixed costsOperating income (loss)Actual$39,5905,0204,1401,8702,50054014,0703,0509,5406,10015,06033,750$(8,230 )Differencefrom Budget$1,180 Favorable120 Unfavorable70 Unfavorable430 Favorable-0- Neither Favorable nor Unfavorable120 Unfavorable120 Favorable220 Unfavorable590 Unfavorable-0- Neither Favorable nor Unfavorable1,210 Unfavorable2,020 Unfavorable$720 UnfavorableIn addition, the owners know that the investment in operating assets at the beginning of the month was $83,920, and it was $70,460 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system.Prepare an investment center responsibility report for the Preventative Services segment for May 2020. (Round ROI to 1 decimal place, e.g. 1.5%.)

A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

The Dinkle and Frizell Dental Clinic provides both preventive and orthodontic dental services. The two owners, Reese Dinkle and Anita Frizell, operate the clinic as two separate investment centers: Preventive Services and Orthodontic Services. Each of them is in charge of one of the centers: Reese for Preventive Services and Anita for Orthodontic Services. Each month, they prepare and income statement for the two centers to evaluate performance and make decisions about how to improve the operational efficiency and profitability of the clinic. Recently, they have been concerned about the profitability of the Preventive Services operations. For several months, it has been reporting a loss. The responsibility report for the month of May 2020 is shown below Service revenue $39.590 $1.180 Favorable 5.000 120 Unfavorable 4,140 70 Unfavorable 1,870 430 Favorable Dental assistant wages 2.500 -0-Neither Favorable nor Unfavorable 540 120 Unfavorable HF Total variable costs 14,070 120 Favorable Fixed costs Allocated portion of receptionist's salary 3,050 220 Unfavorable Dentist salary 9.540 590 Unfavorable Equipment depreciation 6.100 -0-Neither Favorable nor Unfavorable Allocated portion of building depreciation 15.060 1210 Unfavorable 33.750 2020 Unfavorable $(8230) $720 Unfavorable Variable costs: Filling materials Novocain Supplies Utilities Totalfixed costs Actual Operating income (los) Difference from Budget In addition, the owners know that the investment in operating assets at the beginning of the month was $83,920, and it was $70,460 at the end of the month. They have asked for your assistance in evaluating their current performance reporting system. Prepare an investment center responsibility report for the Preventative Services segment for May 2020. (Round ROI to 1 decimal place, eg 1.5%)

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 4EA: Sara has just taken a job as the middle school assistant principal for an area school district....