Stivason Clinic Uses Client-Visits as Its Measure of Activity

question 162

Multiple Choice

Stivason Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Actual results for September:
-The activity variance for personnel expenses in September would be closest to:

• A)$605 U
• B)$605 F
• C)$85 F
• D)$85 U

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Definitions:

Interchangeable Parts

Components that are made to specifications that ensure they are so nearly identical that they will fit into any device of the same type.

Manufacturing

The process of producing goods and products in large quantities, typically utilizing machinery and labor in factories.

Eli Whitney

Known for inventing the cotton gin, a revolutionary device that greatly impacted the agricultural and industrial sectors by dramatically increasing the efficiency of cotton harvesting.

Pure Service

Describes businesses or offerings that are based entirely on providing intangible services, rather than physical products.