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 activity variance for administrative expenses in November would be closest to:
A) $1 F
B) $39 F
C) $39 U
D) $1 U

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 activity variance for administrative expenses in November would be closest to:
A) $1 F 
B) $39 F 
C) $39 U 
D) $1 U

Quizplus · Accepted Answer

11eacbfc_c59b_7cf2_8ffe_75c014e4af64_TB7552_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

Keisker Clinic Uses Client-Visits as Its Measure of Activity