Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for...
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Accounting
Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,140 client-visits, but its actual level of activity was 2,100 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Fixed element per month
Variable element per client-visit
Revenue
$
44.50
Personnel expenses
$
26,100
$
12.60
Medical supplies
600
7.20
Occupancy expenses
6,500
2.40
Administrative expenses
3,100
0.10
Total expenses
$
36,300
$
22.30
Actual results for September:
Revenue
$
93,240
Personnel expenses
$
50,754
Medical supplies
$
15,328
Occupancy expenses
$
11,646
Administrative expenses
$
3,394
The spending variance for Administrative expenses in September would be closest to:
Multiple Choice
$210 U
$84 F
$84 U
$210 F
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