Murphree Clinic Uses Client-Visits as Its Measure of Activity

question 23

Multiple Choice

Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
-The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for April would be closest to:

• A) $5,390 F
• B) $6,265 U
• C) $5,390 U
• D) $6,265 F

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Definitions:

Years

A term referring to the span of time equivalent to 365 days or 12 months, typically used in the context of age, experience, or historical periods.

Y-Intercept

The point where a line or curve intersects the y-axis of a coordinate system.

Vertical Spread

A strategy in options trading that involves purchasing and selling of two options of the same type and expiration date but different strike prices.

Data Points

Individual values or measurements that are collected through observation and are represented in a data set.