1 )Kirnon Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,350 client-visits, but its actual level of activity was 3,260 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue $ 0 $ 39.30 Personnel expenses $ 35,300 $ 10.50 Medical supplies 1,300 7.30 Occupancy expenses 8,300 1.30 Administrative expenses 5,300 0.40 Total expenses $ 50,200 $ 19.50 The activity variance for administrative expenses in July would be closest to:

Multiple Choice

• $96 U
• $36 F
• $36 U
• $96 F

2) Which of the following statements is true?

1. The most effective way to minimize quality costs while maintaining high quality is to avoid having quality problems in the first place. This is the reason for incurring appraisal costs.
2. Quality of conformance refers to the extent to which a product offered by one company is similar to products offered by other companies.
3. The costs of lost sales arising from poor quality are always included in quality cost reports.

3)