Hagel Clinic uses client-visits as its measure of activity.During July, the clinic budgeted for 2, 300 client-visits, but its actual level of activity was 2, 320 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for July would be closest to:
A)$6, 120 U
B)$5, 722 F
C)$5, 722 U
D)$6, 120 F

Question

Hagel Clinic uses client-visits as its measure of activity.During July, the clinic budgeted for 2, 300 client-visits, but its actual level of activity was 2, 320 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:  Actual results for July:  The overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for July would be closest to:
A)$6, 120 U 
B)$5, 722 F 
C)$5, 722 U 
D)$6, 120 F

Quizplus · Accepted Answer

The Answer of Hagel Clinic uses client-visits as its measure of activity.During July, the clinic budgeted for 2, 300 client-visits, but its actual level of activity was 2, 320 client-visits.The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:  Actual results for July:  The overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for July would be closest to:
A)$6, 120 U 
B)$5, 722 F 
C)$5, 722 U 
D)$6, 120 F

Hagel Clinic Uses Client-Visits as Its Measure of Activity