Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 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:
Actual results for September:
The spending variance for occupancy expenses in September would be closest to:
A) $10 F
B) $106 F
C) $10 U
D) $106 U

Question

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 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:
 Actual results for September:
 The spending variance for occupancy expenses in September would be closest to:
A) $10 F 
B) $106 F 
C) $10 U 
D) $106 U

Quizplus · Accepted Answer

11eacbfc_c5b8_7ab6_8ffe_8d0e6bdb9830_TB7552_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

Bracken Clinic Uses Client-Visits as Its Measure of Activity