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 overall revenue and spending variance (i.e.,the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for September would be closest to:
A) $1,798 U
B) $1,798 F
C) $910 U
D) $910 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 overall revenue and spending variance (i.e.,the variance for net operating income in the revenue and spending variance column on the flexible budget performance report)for September would be closest to:
A) $1,798 U 
B) $1,798 F 
C) $910 U 
D) $910 F

Quizplus · Accepted Answer

11ea7761_1788_dde0_81a5_a37e3bba4c08_TB2580_00 11ea7761_1789_04f1_81a5_7513d78159a8_TB2580_00 Because the actual net operating income is greater than the flexible budget, the variance is favorable (F).

Bracken Clinic Uses Client-Visits as Its Measure of Activity