Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:
Actual results for February:
-The spending variance for medical supplies in February would be closest to:
A)$390 F
B)$250 U
C)$250 F
D)$390 U

Question

Langner Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 3,700 client-visits, but its actual level of activity was 3,740 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Actual results for February:

-The spending variance for medical supplies in February would be closest to:

Data used in budgeting:
 Actual results for February: 
-The spending variance for medical supplies in February would be closest to:
A)$390 F 
B)$250 U 
C)$250 F 
D)$390 U

Quizplus · Accepted Answer

The spending variance is the difference between the actual spending and the budgeted spending. In this case, the actual spending was $1,190 and the budgeted spending was $800. Therefore, the spending variance is $1,190 - $800 = $390.

Langner Clinic Uses Client-Visits as Its Measure of Activity