Gotthelf Clinic Uses Client-Visits as Its Measure of Activity

question 201

Multiple Choice

Gotthelf Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:
Actual results for December:
-The spending variance for medical supplies in December would be closest to:

• A)$856 U
• B)$1,030 F
• C)$1,030 U
• D)$856 F

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Definitions:

Binding

A condition, especially in legal or contractual contexts, that obliges entities to act according to the terms of an agreement or rule.

Labor Shortage

A situation in which employers believe there are insufficient qualified candidates to fill job vacancies, impacting the pace and cost of business operations.

Binding Minimum Wage

A government-set wage floor that is above the equilibrium level, leading to potential surpluses in the labor market, such as unemployment.

Teenage Labor

Employment involving individuals typically aged between 13 and 19 years, often regulated by labor laws concerning working hours, types of work, and working conditions to protect younger workers.