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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,
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 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days.
Data used in budgeting:
Fixed element per month | Variable element per tenant-day | ||||
Revenue | - | $ | 35.40 | ||
Wages and salaries | $ | 3,000 | $ | 6.60 | |
Food and supplies | 400 | 12.20 | |||
Facility expenses | 9,600 | 2.30 | |||
Administrative expenses | 7,800 | 0.20 | |||
Total expenses | $ | 20,800 | $ | 21.30 |
Actual results for March:
Revenue | $ | 69,576 | |
Wages and salaries | $ | 16,204 | |
Food and supplies | $ | 25,008 | |
Facility expenses | $ | 14,122 | |
Administrative expenses | $ | 8,238 |
The spending variance for facility expenses in March would be closest to:
$78 U
$78 F
$170 F
$170 U
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