Nussey Clinic uses clientvisits as its measure of activity D

Nussey Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 2,900 client-visits, but its actual level of activity was 2,860 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed Variable element per element per month client-visit $55.00 Revenue Personal expenses Medical supplies Occupancy expenses Administrative expenses Total expenses $20,000 750 5,900 3,900 30,550 11.90 7.60 1.40 0.40 $ 21.30 Actual results for May: Revenue Personal expenses Medical supplies Occupancy expenses Administrative expenses $160,160 $52,000 $22,600 $9,799 $4,300 The spending variance for occupancy expenses in May would be closest to: O $105 U $161 F O $105 F O $161 U

Solution

Spending variance for occupancy expensse = Flexible budget expense-actual expense

= (2860*1.4+5900)-9799

Spending variance for occupancy expense = 105 F

So answer is c) $105 F