Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 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 activity variance for personnel expenses in November would be closest to:
A) $104 F
B) $104 U
C) $134 F
D) $134 U

Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 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 activity variance for personnel expenses in November would be closest to:
A) $104 F 
B) $104 U 
C) $134 F 
D) $134 U

Quizplus · Accepted Answer

11eacbfc_c58e_361a_8ffe_015b26425ce5_TB7552_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

Tennies Clinic Uses Client-Visits as Its Measure of Activity