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aulis 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 February,
aulis 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 February, the kennel budgeted for 5,400 tenant-days, but its actual level of activity was 5,420 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Data used in budgeting:
Fixed element per month | Variable element per tenant-day | |
---|---|---|
Revenue | $ 0 | $ 31.90 |
Wages and salaries | $ 4,400 | $ 7.90 |
Food and supplies | 500 | 12.70 |
Facility expenses | 8,800 | 4.90 |
Administrative expenses | 7,800 | 0.20 |
Total expenses | $ 21,500 | $ 25.70 |
Actual results for February:
Revenue | $ 109,180 |
---|---|
Wages and salaries | $ 23,640 |
Food and supplies | $ 36,804 |
Facility expenses | $ 19,390 |
Administrative expenses | $ 9,168 |
The activity variance for net operating income in February would be closest to:
A: $124 U
B: $8,198 F
C: $124 F
D: $8,198 U
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