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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 4,600 tenant-days, but its actual level of activity was 4,670 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 | - | $ | 35.10 | ||
Wages and salaries | $ | 3,500 | $ | 8.50 | |
Food and supplies | 1,000 | 15.00 | |||
Facility expenses | 9,000 | 4.00 | |||
Administrative expenses | 7,500 | 0.40 | |||
Total expenses | $ | 21,000 | $ | 27.90 | |
Actual results for March:
Revenue | $ | 143,330 | |
Wages and salaries | $ | 28,650 | |
Food and supplies | $ | 71,345 | |
Facility expenses | $ | 27,130 | |
Administrative expenses | $ | 7,105 | |
The spending variance for food and supplies in March would be closest to:
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