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 medical supplies in September would be closest to:
A) $392 F
B) $680 U
C) $680 F
D) $392 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 medical supplies in September would be closest to:
A) $392 F 
B) $680 U 
C) $680 F 
D) $392 U

Quizplus · Accepted Answer

11ea7761_1788_68ae_81a5_8bb87dfb6e59_TB2580_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

Bracken Clinic Uses Client-Visits as Its Measure of Activity