Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
Actual results for February:
-The activity variance for administrative expenses in February would be closest to:
A)$4 F
B)$56 F
C)$4 U
D)$56 U

Question

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The activity variance for administrative expenses in February would be closest to:

Data used in budgeting:
 Actual results for February: 
-The activity variance for administrative expenses in February would be closest to:
A)$4 F 
B)$56 F 
C)$4 U 
D)$56 U

Quizplus · Accepted Answer

Since the actual amount of administrative expenses is $509 and the flexible budget amount is $505, the variance is $4 unfavorable (actual amount - flexible budget amount = $509 - $505 = $4 U).

Langner Clinic Uses Client-Visits as Its Measure of Activity