Lantagne Clinic Uses Client-Visits as Its Measure of Activity

question 217

Multiple Choice

Lantagne Clinic uses client-visits as its measure of activity.During May, the clinic budgeted for 3, 800 client-visits, but its actual level of activity was 3, 820 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 overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to:

• A)$284 U
• B)$670 F
• C)$670 U
• D)$284 F

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Definitions:

Save Time

Refers to the methods or practices that reduce the amount of time required to perform an activity or achieve a goal.

Sales Representatives

Individuals responsible for selling a company's products or services to customers and managing client relationships.

Customers

Individuals or businesses that purchase goods or services produced by a company.

Commissioned Sales Rep

A salesperson who earns income based on the amount of sales they generate, receiving a percentage of the sales as their commission.