moorhouse clinic uses client visits as its measure of activity during december conti 460138

Moorhouse Clinic uses client visits as its measure of activity. During December, the clinic budgeted for 3,700 client visits, but its actual level of activity was 3,690 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:

Fixed element Variable element

per month per client-visit

Revenue ____-____ $25.10

Personnel expenses $27,100 $7.10

Medical supplies 1,500 4.50

Occupancy expenses 6,000 1.00

Administrative expenses 3,000 0.10

Total expenses $37,600 $12.70

Actual results

for December:

Revenue $96,299

Personnel expenses $51,009

Medical supplies $17,425

Occupancy expenses $9,240

Administrative expenses $3,239

12. The spending variance for medical supplies in December would be closest to

A. $725 F.

B. $680 U.

C. $680 F.

D. $725 U.

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