Werber Clinic Uses Client-Visits as Its Measure of Activity

question 67

Multiple Choice

Werber Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,700 client-visits, but its actual level of activity was 2,730 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
-The activity variance for administrative expenses in January would be closest to:

• A) $12 F
• B) $8 F
• C) $12 U
• D) $8 U

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Definitions:

Mortgage Bond

A type of bond secured by a mortgage on one or more assets, offering the bondholder a claim against the assets in case of default.

Securities

Financial instruments that represent an ownership position in a corporation (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Equipment

Tangible property other than land or buildings that is used in the operations of a business, such as machinery, tools, or vehicles.

Debenture

A type of unsecured debt instrument issued by a company, based on its general creditworthiness, without specific collateral backing.