Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Actual results for September:

-The revenue variance for September would be closest to:
A) $210 U
B) $1,990 F
C) $1,990 U
D) $210 F

Question

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
  Actual results for September:
 
-The revenue variance for September would be closest to:
A) $210 U 
B) $1,990 F 
C) $1,990 U 
D) $210 F

Quizplus · Accepted Answer

11ea7761_1788_1a8d_81a5_3701724f7c05_TB2580_00 Because the actual revenue is less than the flexible budget, the variance is unfavorable (U).

Bracken Clinic Uses Client-Visits as Its Measure of Activity