Guareno Clinic Uses Client-Visits as Its Measure of Activity

question 313

Multiple Choice

Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 3,800 client-visits, but its actual level of activity was 3,760 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) $8 U
• B) $90 F
• C) $90 U
• D) $8 F

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Definitions:

Probability

A measure of the likelihood of a specific event occurring, typically expressed as a value between 0 and 1.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Elevators

Mechanical systems used for vertical transportation of goods or passengers between floors in a building.

Lobby

A group of people seeking to influence politicians or public officials on a particular issue.