Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 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:
Actual results for November:
The spending variance for medical supplies in November would be closest to:
A) $790 F
B) $790 U
C) $732 U
D) $732 F

Question

Tennies Clinic uses client-visits as its measure of activity. During November, the clinic budgeted for 3,300 client-visits, but its actual level of activity was 3,290 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:
 Actual results for November:
 The spending variance for medical supplies in November would be closest to:
A) $790 F 
B) $790 U 
C) $732 U 
D) $732 F

Quizplus · Accepted Answer

11eacbfc_c58e_843d_8ffe_4fcf39fcfc19_TB7552_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Tennies Clinic Uses Client-Visits as Its Measure of Activity