Fager Clinic Uses Client-Visits as Its Measure of Activity

question 231

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:

Technological Advance

The process of introducing new technologies or improving existing ones to increase efficiency, productivity, or quality.

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as machinery, buildings, and equipment.

Investment In-Kind

Contributions of goods, services, or other non-monetary assets to an investment or project rather than cash.

Surplus Labor

The part of the labor force that exceeds the amount needed for the current level of production.