Kaina Clinic Uses Client-Visits as Its Measure of Activity

question 330

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 net operating income in May would be closest to:

• A) $396 F
• B) $396 U
• C) $486 F
• D) $486 U

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Barrier to Entry

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