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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 5,000 tenant-days, but its actual level of activity was 5,030 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 | - | $ | 35.50 | ||
Wages and salaries | $ | 2,200 | $ | 8.90 | |
Food and supplies | 1,400 | 15.40 | |||
Facility expenses | 7,800 | 4.40 | |||
Administrative expenses | 6,300 | 0.20 | |||
Total expenses | $ | 17,700 | $ | 28.90 | |
Actual results for March:
Revenue | $ | 151,125 | |
Wages and salaries | $ | 28,690 | |
Food and supplies | $ | 79,225 | |
Facility expenses | $ | 29,130 | |
Administrative expenses | $ | 7,109 | |
The spending variance for facility expenses in March would be closest to
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