Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,480 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:

Data used in budgeting:

Fixed element per monthVariable element per client-visitRevenue-$35.50Personnel expenses$27,500$11.50Medical supplies1,5005.50Occupancy expenses10,5001.00Administrative expenses6,5000.10Total expenses$46,000$18.10

Actual results for January:

Revenue$124,700Personnel expenses$72,050Medical supplies$22,710Occupancy expenses$14,650Administrative expenses$8,155

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 January would be closest to:

Multiple Choice

• $7,417 F
• $7,765 U
• $7,417 U
• $7,765 F