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Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290
Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 4,300 client-visits, but its actual level of activity was 4,290 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 | $ 0 | $ 37.40 |
Personnel expenses | $ 31,500 | $ 12.40 |
Medical supplies | 2,200 | 7.80 |
Occupancy expenses | 9,600 | 3.90 |
Administrative expenses | 7,900 | 0.40 |
Total expenses | $ 51,200 | $ 24.50 |
Actual results for November:
Revenue | $ 160,661 |
---|---|
Personnel expenses | $ 84,652 |
Medical supplies | $ 36,512 |
Occupancy expenses | $ 25,831 |
Administrative expenses | $ 9,367 |
The spending variance for medical supplies in November would be closest to:
A: $850 F
B: $772 U
C: $850 U
D:$772 F
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