Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 4,000 client-visits, but its actual level of activity was 3,980 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 month			Variable element per client-visit
Revenue		-		$	36.00
Personnel expenses	$	28,000		$	12.00
Medical supplies		2,000			6.00
Occupancy expenses		11,000			1.00
Administrative expenses		7,000			0.10
Total expenses	$	48,000		$	19.10

Actual results for January:

Revenue	$	124,750
Personnel expenses	$	70,500
Medical supplies	$	21,050
Occupancy expenses	$	14,000
Administrative expenses	$	7,850

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

A $8,250 F

B $7,912 F

C $8,250 U

D $7,912 U

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PART 2

Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 4,600 tenant-days, but its actual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	31.10
Wages and salaries	$	3,600		$	7.10
Food and supplies		200			11.90
Facility expenses		8,600			4.10
Administrative expenses		8,400			0.50
Total expenses	$	20,800		$	23.60

Actual results for February:

Revenue	$	108,380
Wages and salaries	$	23,560
Food and supplies	$	36,796
Facility expenses	$	19,310
Administrative expenses	$	9,152

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

Multiple Choice

A $5,862 U

B $150 U

C $5,862 F

D $150 F