Glassing Clinic Uses Client-Visits as Its Measure of Activity

question 166

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 personnel expenses in September would be closest to:

• A)$196 U
• B)$196 F
• C)$664 F
• D)$664 U

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Definitions:

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials and labor expenses.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Book Value

The net value of an asset or a company, calculated by subtracting its total liabilities from its total assets.