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
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 3,400 tenant-days, but its actual level of activity was 3,460 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 Variable element per per month tenant-day Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses 0 $ 34.30 $ 2,300 $ 7.30 1,300 13.80 7,800 2.80 6,300 0.40 $ 17,700 $ 24.30 $ 115,625 $ 28,530 $ 49,580 $ 16,500 $ 7,093 The spending variance for food and supplies in March would be closest to:
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