Paulis Kennel uses tenant-days as its measure of activity; ananimal housed in the kennel for one day is counted as onetenant-day. During February, the kennel budgeted for 2,500tenant-days, but its actual level of activity was 2,480tenant-days. The kennel has provided the following data concerningthe formulas used in its budgeting and its actual results forFebruary:
Data used in budgeting:
| Fixed element per month | Variable element per tenant-day |
| Revenue | | - | | $ | 35.30 |
| | | | | |
| Wages and salaries | $ | 2,500 | | $ | 5.90 |
| Food and supplies | | 400 | | | 13.80 |
| Facility expenses | | 8,900 | | | 3.40 |
| Administrative expenses | | 7,800 | | | 0.40 |
| Total expenses | $ | 19,600 | | $ | 23.50 |
|
Actual results for February:
| |
| Revenue | $ | 85,654 |
| Wages and salaries | $ | 16,992 |
| Food and supplies | $ | 33,084 |
| Facility expenses | $ | 16,682 |
| Administrative expenses | $ | 8,732 |
|
The activity variance for net operating income in February wouldbe closest to:
Garrison 16e Rechecks 2018-06-07
Multiple Choice
