Glassing Clinic Uses Client-Visits as Its Measure of Activity

question 55

Multiple Choice

Glassing Clinic uses client-visits as its measure of activity.During September, the clinic budgeted for 3, 700 client-visits, but its actual level of activity was 3, 660 client-visits.The clinic has provided the following data concerning the formulas to be used in its budgeting: The activity variance for administrative expenses in September would be closest to:

• A)$132 F
• B)$12 U
• C)$132 U
• D)$12 F

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Definitions:

Discount On Notes Payable

The difference between the face value of a note and what is actually paid, which occurs when the note is issued for less than its nominal value.

Unearned Revenue

Funds a company acquires for products or services that are still to be provided or executed.

Ordinary Gains

Profits resulting from the sale of assets used in a business's normal operations, subject to regular income tax rates.

Troubled Debt Restructuring

A process where terms of a debt are modified due to the debtor's financial difficulties, often involving a reduction in interest rate or principal owed.