Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
Actual results for January:

-The activity variance for net operating income in January would be closest to:
A) $188 F
B) $7,118 F
C) $188 U
D) $7,118 U

Question

Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting:
  Actual results for January:
 
-The activity variance for net operating income in January would be closest to:
A) $188 F 
B) $7,118 F 
C) $188 U 
D) $7,118 U

Quizplus · Accepted Answer

11ea7761_1768_fa25_81a5_fda5ee550ea6_TB2580_00 Because the flexible budget net operating income is less than the planning budget, the variance is unfavorable (U).

Bartosiewicz Clinic Uses Client-Visits as Its Measure of Activity