Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting:
Actual results for November:
The spending variance for occupancy expenses in November would be closest to:
A) $530 U
B) $510 F
C) $510 U
D) $530 F

Question

Keisker Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,190 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting:
 Actual results for November:
 The spending variance for occupancy expenses in November would be closest to:
A) $530 U 
B) $510 F 
C) $510 U 
D) $530 F

Quizplus · Accepted Answer

11eacbfc_c59b_cb15_8ffe_1bc7d61f8f94_TB7552_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Keisker Clinic Uses Client-Visits as Its Measure of Activity