Guareno Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,500 client-visits, but its actual level of activity was 2,450 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 per monthVariable element per client-visitRevenue - $45.20 Personnel expenses$34,300 $13.30Medical supplies 1,600 5.40Occupancy expenses 10,000 1.80Administrative expenses 3,800 0.20Total expenses$49,700 $20.70?Actual results for December: ?Revenue$108,650 Personnel expenses$65,755?Medical supplies$14,380?Occupancy expenses$14,000?Administrative expenses$4,210???The spending variance for medical
supplies in December would be closest to:
A. $720 U
B. $450 F
C. $720 F
D. $450 U
Answer: B
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