Question
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 3,300 tenant-days, but its actual level of activity was 3,340 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: Fixed element per month Variable element per tenant-day Revenue - $ 34.20 Wages and salaries $ 2,200 $ 7.20 Food and supplies 1,200 13.70 Facility expenses 7,700 2.70 Administrative expenses 6,200 0.30 Total expenses $ 17,300 $ 23.90 Actual results for March: Revenue $ 111,226 Wages and salaries $ 28,520 Food and supplies $ 47,305 Facility expenses $ 15,750 Administrative expenses $ 7,092 The revenue variance for March would be closest to: Multiple Choice $1,634 U $3,002 U $3,002 F $1,634 F
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