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 revenue variance for August would be closest to:
A)$4,150 F
B)$2,764 F
C)$2,764 U
D)$4,150 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 revenue variance for August would be closest to:

Data used in budgeting:

Actual results for August:

-The revenue variance for August would be closest to:
A)$4,150 F 
B)$2,764 F 
C)$2,764 U 
D)$4,150 U

Quizplus · Accepted Answer

The revenue variance is calculated as the difference between actual revenue and budgeted revenue. A positive variance indicates a favorable (F) outcome, while a negative variance indicates an unfavorable (U) outcome. The closest favorable variance to the given options is $4,150 F.

Buonocore Clinic Uses Client-Visits as Its Measure of Activity