Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March:
-The spending variance for medical supplies in March would be closest to:
A) $1,050 U
B) $1,050 F
C) $1,263 F
D) $1,263 U

Question

Cotty Clinic uses client-visits as its measure of activity. During March, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for March: 
-The spending variance for medical supplies in March would be closest to:
A) $1,050 U 
B) $1,050 F 
C) $1,263 F 
D) $1,263 U

Quizplus · Accepted Answer

Spending variance = (Actual spending - Budgeted spending)= (1,263 - 213)= $1,050 F

Cotty Clinic Uses Client-Visits as Its Measure of Activity