Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 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 element per monthVariable element per client-visitRevenue - $25.80 Personnel expenses$20,200 $7.10Medical supplies 900 4.60Occupancy expenses 5,500 0.70Administrative expenses 3,500 0.20Total expenses$30,100 $12.60?Actual results for May: ?Revenue$78,246 Personnel expenses$42,647?Medical supplies$15,002?Occupancy expenses$7,289?Administrative expenses$4,294???The activity variance for administrative expenses in May would
be closest to:
A. $194 U
B. $194 F
C. $6 F
D. $6 U
Answer: C
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