Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel...
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Accounting
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 4,800 tenant-days, but its actual level of activity was 4,820 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Data used in budgeting:
Fixed element per month
Variable element per tenant-day
Revenue
$ 0
$ 35.30
Wages and salaries
$ 2,000
$ 8.70
Food and supplies
1,200
15.20
Facility expenses
7,600
4.20
Administrative expenses
7,700
0.60
Total expenses
$ 18,500
$ 28.70
Actual results for March:
Revenue
$ 145,135
Wages and salaries
$ 28,670
Food and supplies
$ 75,065
Facility expenses
$ 27,230
Administrative expenses
$ 7,107
The spending variance for facility expenses in March would be closest to:
Multiple Choice
$614 U
$530 U
$614 F
$530 F
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