Werber Clinic Uses Client-Visits as Its Measure of Activity

question 285

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 personnel expenses in January would be closest to:

• A) $661 U
• B) $261 U
• C) $261 F
• D) $661 F

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its planned or standard cost, indicating how effectively resources are being used.