Accounting

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Current Attempt in Progress 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 an 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. Actual Difference from Budget $1,250 Favorable Service revenue $41,030 5,050 Variable costs: Filling materials Novocain Supplies 3,940 1,910 130 Unfavorable 120 Unfavorable 420 Favorable -0- Neither Favorable nor Unfavorable 100 Unfavorable 70 Favorable 2,460 Dental assistant wages Utilities 470 Total variable costs 13,830 Fixed costs: Allocated portion of receptionist's salary 3,040 290 Unfavorable Difference from Budget Actual Service revenue $41,030 $1,250 Favorable Variable costs: Filling materials 5,050 130 Unfavorable Novocain 3,940 120 Unfavorable Supplies 1,910 Dental assistant wages 2,460 420 Favorable -0- Neither Favorable nor Unfavorable 100 Unfavorable Utilities 470 Total variable costs 13,830 70 Favorable Fixed costs: 3,040 290 Unfavorable Allocated portion of receptionist's salary Dentist salary 10,300 460 Unfavorable Equipment depreciation 5,920 -0- Neither Favorable nor Unfavorable 1,080 Unfavorable Allocated portion of building depreciation 15,060 Total fixed costs 34,320 1,830 Unfavorable Operating income (loss) $(7,120) $510 Unfavorable In addition the owners know that the investment in operating assets at the beginning of the month was $84 580, and it was $73,630 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 Rol to 1 decimal place, 23. 1.5%) DINKLE AND FRIZELL DENTAL CLINIC Preventive Services Responsibility Report For the Month Ended May 31, 2020 Difference Favorable F Unfavorable U Neither Favorable nor Unfavorable Budget Actual Contribution Margin Controllable Fed Costs Controllable Margin Dental Assistant Wages Dentist Salary Equipment Depreciation Filing Material Gross Profit Novocain Other Fixed Costs Service Revenue Supplet TOLM Controllable Fixed Costs Total Variable costs Uutis Variable costs located portion of Receptionist Salary Allocated Portion of building Depreciation In addition, the owners know that the investment in operating assets at the beginning of the month was $84,580, and it was $73,630 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%) DINKLE AND FRIZELL DENTAL CLINIC Preventive Services Responsibility Report For the Month Ended May 31, 2020 Difference Favorable F Unfavorable U Neither Favorable nor Unfavorable N Budget Actual $ Budget Actual Neither Favorable nor Unfavorable N $ $ + + III - $ $ % % % % %