5.

Glassing Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,990 client-visits, but its actual level of activity was 2,950 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				$	23.10
Personnel expenses	$	15,750		$	5.90
Medical supplies		980			4.90
Occupancy expenses		4,080			2.50
Administrative expenses		3,260			1.30
Total expenses	$	24,070		$	14.60

The activity variance for net operating income in September would be closest to:

$340 U

$3,500 F

$340 F

$3,500 U