Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Actual results for February:

-The revenue variance for February would be closest to:
A) $2,760 U
B) $2,760 F
C) $6,170 U
D) $6,170 F

Question

Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
  Actual results for February:
 
-The revenue variance for February would be closest to:
A) $2,760 U 
B) $2,760 F 
C) $6,170 U 
D) $6,170 F

Quizplus · Accepted Answer

11ea7761_1777_7857_81a5_3dbc6df361f8_TB2580_00 Because the actual revenue is greater than the flexible budget, the variance is favorable (F).

Fager Clinic Uses Client-Visits as Its Measure of Activity