Chatham Clinic has accumulated the following information regarding its patient visits: Static budget: Patient visits: 1,500 Variable cost per visit: $50 Fixed costs: $100,000 Actual results: Patient visits: 1,400 Variable cost per visit: $55 Fixed costs: $100,000 What is the management variance for Chatham Clinic?

1-$2,000 favorable

2-$2,000 unfavorable

3-$7,000 favorable

4-$7,000 unfavorable

5-$5,000 favorable

part 2:

What is the cost variance for Chatham Clinic?

a. $2,000 favorable

b. $2,000 unfavorable

c. $7,000 favorable

d. $7,000 unfavorable

e. $5,000 favorable