Asked by Emanuel Holesome on Apr 27, 2024
Verified
The spending variance for facility expenses in March would be closest to:
A) $78 F
B) $170 U
C) $78 U
D) $170 F
Facility Expenses
Costs associated with maintaining and operating a physical location or building, such as rent, utilities, and maintenance.
Spending Variance
The difference between the actual amount spent and the budgeted amount for a specific period or category.
- Familiarize yourself with the notion of spending variance and how to execute its calculation for a variety of categories, encompassing manufacturing overhead, materials for refurbishment, other miscellaneous expenses, equipment's depreciation, costs of supplies, occupancy costs, employees' compensation, facility expenses, travel expenses, the expense of power, and medical supply costs.
Verified Answer
AG
Aaron Gambino
May 02, 2024
Final Answer :
D
Explanation : 
Because the actual expense is less than the flexible budget, the variance is favorable (F).
Reference: CH09-Ref32
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: 
Because the actual expense is less than the flexible budget, the variance is favorable (F).Reference: CH09-Ref32
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: 
Learning Objectives
- Familiarize yourself with the notion of spending variance and how to execute its calculation for a variety of categories, encompassing manufacturing overhead, materials for refurbishment, other miscellaneous expenses, equipment's depreciation, costs of supplies, occupancy costs, employees' compensation, facility expenses, travel expenses, the expense of power, and medical supply costs.
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