2.

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 4,000 tenant-days, but its actual level of activity was 4,040 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed Variable element element per per month tenant-day $34.90 $ 2,900 $ 7.90 1,900 14.40 8,400 3.40 6,900 0.40 $20,100 $26.10 Actual results for March: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $131,231 $ 28,590 $ 60,575 $ 21,800 $ 7,099 The revenue variance for March would be closest to: Multiple Choice $8,369 U $9,765 U $9,765 F $8,369 F Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,130 units, but its actual level of activity was 5,080 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed Variable element element per per month unit $39.90 Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses $ 0 0 41,800 23,000 $ 64,800 $ 5.80 16.00 1.60 .50 $23.90 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $198, 110 $ 28,865 $ 80,565 $ 49, 405 $ 22,980 The spending variance for manufacturing overhead in May would be closest to: Multiple Choice $523 U $603 U $603 F $523 F