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

question 175

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 performance report for last month, the spending variance for administrative expenses was:

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

---

Definitions:

Dive Shop

A retail establishment that sells scuba diving and snorkeling equipment, and often offers dive training and dive trip arrangements.

Damages

Monetary compensation awarded by a court to indemnify harm or loss suffered.

Diving Equipment

Tools and gear used for underwater diving adventures, including items like masks, fins, and oxygen tanks.

South African Law

The legal system governing the Republic of South Africa, encompassing its statutes, case law, and legal principles.