Everyone Deserves to Smile mobile dentist office budgeted for 4325 patient visits a year. Everyone Deserves to Smile actually saw 4415 patients during the year and they have provided the following data: Based on the given information, what is the volume variance for revenue?
A)$90 Favorable
B)$0
C)$6750 Unfavorable
D)$6750 Favorable

Question

Everyone Deserves to Smile mobile dentist office budgeted for 4325 patient visits a year. Everyone Deserves to Smile actually saw 4415 patients during the year and they have provided the following data:  Based on the given information, what is the volume variance for revenue?
A)$90 Favorable 
B)$0 
C)$6750 Unfavorable 
D)$6750 Favorable

Quizplus · Accepted Answer

To calculate volume variance for revenue, we need to find the difference between the actual number of patients seen and the budgeted number of patients and multiply it by the budgeted revenue per patient.

Budgeted revenue per patient = $150 
Budgeted patients = 4325 
Actual patients = 4415

Volume variance for revenue = (4415 - 4325) x $150 
= 90 x $150 
= $13,500

Since the actual revenue exceeded the budgeted revenue, the variance is favorable. Therefore, the correct answer is D) $6750 Favorable.

Everyone Deserves to Smile Mobile Dentist Office Budgeted for 4325