Paradiso Medical Clinic Measures Its Activity in Terms of Patient-Visits

Multiple Choice

Paradiso Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 1,060 patient-visits and the actual level of activity was 1,050 patient-visits. The cost formula for administrative expenses is $3.00 per patient-visit plus $17,000 per month. The actual administrative expense was $19,300. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

A) $850 F
B) $220 U
C) $30 F
D) $880 F