Langner Clinic Uses Client-Visits as Its Measure of Activity

question 144

Multiple Choice

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
Actual results for February:
-The activity variance for administrative expenses in February would be closest to:

• A)$4 F
• B)$56 F
• C)$4 U
• D)$56 U

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Definitions:

Descriptive Statement

A written document that clearly describes the characteristics or details of an item or event.

Service Revenue

Income earned by a company for performing a service rather than selling physical goods.

Salaries and Wages Expense

The total amount paid to employees for services rendered during a specific period; considered an operating expense.

Unearned Subscription Revenue

Income received from subscriptions before the service has been fully delivered or the term of the subscription has been fulfilled.