Fussner Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,610 patient-visits and the actual level of activity was 1,670 patient-visits. The cost formula for administrative expenses is $3.30 per patient-visit plus $17,900 per month. The actual administrative expense was $24,600. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

$1,387 U

$198 U

$69 U

$1,189 U

.

Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic. This error would most likely result in a large:

favorable variable overhead efficiency variance.

favorable fixed manufacturing overhead budget variance.

unfavorable overhead volume variance.

unfavorable fixed manufacturing overhead budget variance.