Reference no: EM132659675

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,650 client-visits, but its actual level of activity was 3,640 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                                     -                                                       $36.10
Personnel expenses                       $30,200                                               $11.10
Medical supplies                            $1,550                                                     $6.50
Occupancy expenses                     $8,300                                                       $2.60
Administrative expenses                  $6,600                                                      $0.30
Total expenses                             $46,650                                                 $20.50

Actual results for November:

Revenue $131,586
Personnel expenses $70,573
Medical supplies $26,021
Occupancy expenses $17,277
Administrative expenses $7,468

Problem 1: The spending variance for medical supplies in November would be closest to:

Multiple Choice

Option 1: -$811 F

Option 2: -$811 U

Option 3: -$746 U

Option 4: -$746 F