Kaina Clinic Uses Client-Visits as Its Measure of Activity

question 268

Multiple Choice

Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
Actual results for May:
The activity variance for administrative expenses in May would be closest to:

• A) $6 U
• B) $6 F
• C) $194 U
• D) $194 F

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Definitions:

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