Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The spending variance for medical supplies in July would be closest to:
A)$580 U
B)$580 F
C)$728 F
D)$728 U

Question

Hagel Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,300 client-visits, but its actual level of activity was 2,320 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

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

Data used in budgeting:

Actual results for July:

-The spending variance for medical supplies in July would be closest to:
A)$580 U 
B)$580 F 
C)$728 F 
D)$728 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 $1,308 and the budgeted spending was $728. Therefore, the spending variance is $1,308 - $728 = $580.

Hagel Clinic Uses Client-Visits as Its Measure of Activity