Nussey Clinic Uses Client-Visits as Its Measure of Activity

Multiple Choice

Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,050 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:
Actual results for May:
-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 May would be closest to:

A) $230 F
B) $1,200 U
C) $1,200 F
D) $230 U