Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The activity variance for personnel expenses in August would be closest to:
A)$468 F
B)$468 U
C)$1,248 F
D)$1,248 U

Question

Buonocore Clinic uses client-visits as its measure of activity. During August, the clinic budgeted for 2,800 client-visits, but its actual level of activity was 2,770 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for August:

Data used in budgeting:

Actual results for August:

-The activity variance for personnel expenses in August would be closest to:

Data used in budgeting:

Actual results for August:

-The activity variance for personnel expenses in August would be closest to:
A)$468 F 
B)$468 U 
C)$1,248 F 
D)$1,248 U

Quizplus · Accepted Answer

The activity variance is calculated by comparing the flexible budget to the actual results. If the actual expenses are less than the flexible budget, it is favorable (F). The closest favorable variance given is $468 F.

Buonocore Clinic Uses Client-Visits as Its Measure of Activity