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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 3,900 tenant-days, but its actual level of activity was 3,920 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 | - | $ | 34.80 | ||
Wages and salaries | $ | 2,800 | $ | 7.80 | |
Food and supplies | 1,800 | 14.30 | |||
Facility expenses | 8,300 | 3.30 | |||
Administrative expenses | 6,800 | 0.30 | |||
Total expenses | $ | 19,700 | $ | 25.70 | |
Actual results for March:
Revenue | $ | 128,321 | |
Wages and salaries | $ | 28,580 | |
Food and supplies | $ | 58,255 | |
Facility expenses | $ | 20,980 | |
Administrative expenses | $ | 7,098 | |
The spending variance for facility expenses in March would be closest to:
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