Fall City Hospital has an outpatient clinic. Jeffrey Harper, the
hospital’s chief administrator, is very concerned about cost
control and has asked that performance reports be prepared that
compare budgeted and actual amounts for medical assistants, clinic
supplies, and lab tests. Past financial studies have shown that the
cost of clinic supplies used is driven by the number of medical
assistant labor hours worked, whereas lab tests are highly
correlated with the number of patients served.
The following information is...