Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Actual results for December:
The spending variance for medical supplies in December would be closest to:
A) $720 F
B) $450 U
C) $720 U
D) $450 F

Question

Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:  Actual results for December:
 The spending variance for medical supplies in December would be closest to:
A) $720 F 
B) $450 U 
C) $720 U 
D) $450 F

Quizplus · Accepted Answer

The Answer of Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting:  Actual results for December:
 The spending variance for medical supplies in December would be closest to:
A) $720 F 
B) $450 U 
C) $720 U 
D) $450 F

Guareno Clinic Uses Client-Visits as Its Measure of Activity