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:

Legal Presumption

An assumption made by law that is taken as true unless disproved by evidence to the contrary.

Commercial Arrangements

Agreements or transactions related to the conduct of commerce, including sales, services, and distribution of goods.

Lien

A legal right or interest that a creditor has in the debtor's property, until a debt or duty that it secures is satisfied.

Court Order

A directive issued by a judicial authority, requiring an individual or entity to perform or cease performing a specific action.