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 3,400 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 per month Variable element per tenant-day Revenue - $ 34.30 Wages and salaries $ 2,300 $ 7.30 Food and supplies 1,300 13.80 Facility expenses 7,800 2.80 Administrative expenses 6,300 0.40 Total expenses $ 17,700 $ 24.30 Actual results for March: Revenue $ 115,625 Wages and salaries $ 28,530 Food and supplies $ 49,580 Facility expenses $ 16,500 Administrative expenses $ 7,093 The spending variance for facility expenses in March would be closest to:
Multiple Choice
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$988 F
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$820 U
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$988 U
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$820 F
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