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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,350 client-visits, but its actual level of activity was 3,340

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,350 client-visits, but its actual level of activity was 3,340 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Fixed element per month Variable element per client-visit
Revenue - $ 35.50
Personnel expenses $ 29,600 $ 10.50
Medical supplies 1,250 5.90
Occupancy expenses 7,700 2.00
Administrative expenses 6,000 0.40
Total expenses $ 44,550 $ 18.80

Actual results for November:

Revenue $ 118,737
Personnel expenses $ 64,645
Medical supplies $ 21,749
Occupancy expenses $ 13,899
Administrative expenses $ 7,125

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

Multiple Choice

  • $793 F

  • $793 U

  • $734 U

  • $734 F

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