Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting: Actual results for September:
The spending variance for medical supplies in September would be closest to:

A) $392 F
B) $680 U
C) $680 F
D) $392 U

Question

Bracken Clinic uses client-visits as its measure of activity. During September, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,140 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for September:Data used in budgeting:

Actual results for September:

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

A) $392 F
B) $680 U
C) $680 F
D) $392 U

Riley Akins · Accepted Answer

Final Answer : C, Explanation :  Spending variance = Actual cost - Budgeted costActual cost = Actual quantity x Actual price= 940 x $0.80= $752Budgeted cost = Budgeted quantity x Budgeted price= 890 x $0.80= $712Spending variance = $752 - $712= $40 FTherefore, option C, $680 F is the closest answer.

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