Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During April, the company budgeted for 5,100 units, but its actual level of activity was 5,060 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:

	Fixed element per month			Variable element per unit
Revenue				$	35.90
Direct labor	$	0		$	7.80
Direct materials		0			10.10
Manufacturing overhead		38,600			1.90
Selling and administrative expenses		21,000			0.40
Total expenses	$	59,600		$	20.20

Actual results for April:

Revenue	$	179,164
Direct labor	$	41,248
Direct materials	$	49,086
Manufacturing overhead	$	48,544
Selling and administrative expenses	$	22,354

The spending variance for direct materials in April would be closest to:

Multiple Choice

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$2,020 F

$2,020 U

$2,424 F

$2,424 U

Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:

	Fixed element per month			Variable element per client-visit
Revenue				$	44.60
Personnel expenses	$	23,200		$	15.10
Medical supplies		900			7.40
Occupancy expenses		6,500			2.00
Administrative expenses		4,000			0.20
Total expenses	$	34,600		$	24.70

Actual results for July:

Revenue	$	100,902
Personnel expenses	$	60,922
Medical supplies	$	18,648
Occupancy expenses	$	11,290
Administrative expenses	$	4,594

The spending variance for medical supplies in July would be closest to:

Multiple Choice

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$580 U

$580 F

$728 F

$728 U

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