Fager Clinic Uses Client-Visits as Its Measure of Activity

question 379

Multiple Choice

Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 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 revenue variance for February would be closest to:

• A) $2,760 U
• B) $2,760 F
• C) $6,170 U
• D) $6,170 F

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Definitions:

Complements

Items or services that are consumed in tandem, where using or consuming one enhances the desirability or utility of the other.

Gas Stations

Facilities that sell fuel and often other goods and services for motor vehicles.

Automobiles

Motor vehicles with four wheels designed to transport people; cars are the most common form of these.

Annual Crop

Plants that are sown, grow, are harvested, and die all in one growing season or year.