Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Fixed element per monthVariable element per client-visitRevenue - $68.20 Personnel expenses$32,300 $21.50Medical supplies 1,200 12.50Occupancy expenses 9,700 3.40Administrative expenses 5,000 0.10Total expenses$48,200 $37.50?Actual results for February: ?Revenue$156,210 Personnel expenses$80,445?Medical supplies$30,105?Occupancy expenses$16,800?Administrative expenses$5,015???The spending variance for medical supplies
in February would be closest to:
A. $780 F
B. $1,405 U
C. $780 U
D. $1,405 F
Answer: C
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