Nussey Clinic Uses Client-Visits as Its Measure of Activity

question 27

Multiple Choice

Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,050 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 spending variance for occupancy expenses in May would be closest to:

• A)$135 U
• B)$135 F
• C)$80 U
• D)$80 F

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Definitions:

Diabetes Insipidus

A disorder marked by an imbalance of water in the body, leading to intense thirst and the production of large amounts of urine.

ADH

Antidiuretic hormone, a peptide hormone that regulates the amount of water reabsorbed by the kidneys.

Aldosterone

A steroid hormone produced by the vertebrate adrenal cortex; stimulates sodium reabsorption. See mineralocorticoids.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, commonly used as a fertilizer and in various industrial processes.