Murphree Clinic Uses Client-Visits as Its Measure of Activity

Multiple Choice

Murphree Clinic uses client-visits as its measure of activity. During April, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,350 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for April:
-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 April would be closest to:

A) $5,390 F
B) $6,265 U
C) $5,390 U
D) $6,265 F