Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

PLEASE SHOW WORK, THANK YOU! WILL VOTE

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mcgraw Hills Homework Manager Access Code To Accompany Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

3rd Edition

0073264938, 978-0073264936

More Books

Students also viewed these Accounting questions

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago