Hoeper Clinic Uses Client-Visits as Its Measure of Activity

question 30

Multiple Choice

Hoeper Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,600 client-visits, but its actual level of activity was 2,570 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:
-The spending variance for medical supplies in January would be closest to:

• A) $787 F
• B) $787 U
• C) $580 F
• D) $580 U

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Definitions:

Convertible Bonds

Debt securities issued by a corporation that can be converted into a predetermined number of common stock shares at the holder's option.

Earnings Before Taxes

The income of a company before taking into account the tax expense, used to assess profitability.

Credit Default Swap

A fiscal derivative or agreement enabling an investor to exchange or transfer their credit risk to another investor.

Recovery Value

The estimated amount that an asset can be sold for at the end of its useful life, or the value recovered from an investment or loan.