Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Actual results for December:

-The activity variance for administrative expenses in December would be closest to:
A) $10 U
B) $90 F
C) $90 U
D) $10 F

Question

Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
  Actual results for December:
 
-The activity variance for administrative expenses in December would be closest to:
A) $10 U 
B) $90 F 
C) $90 U 
D) $10 F

Quizplus · Accepted Answer

11ea7761_1772_bd52_81a5_030c4018f8c5_TB2580_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

Guareno Clinic Uses Client-Visits as Its Measure of Activity