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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 5,400 tenant-days, but its actual level of activity was 5,450 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 | 0 | $ 35.90 |
Wages and salaries | $ 2,600 | $ 9.30 |
Food and supplies | 1,800 | 15.80 |
Facility expenses | 8,200 | 4.80 |
Administrative expenses | 6,700 | 0.60 |
Total expenses | $ 19,300 | $ 30.50 |
Actual results for March:
Revenue | $ 172,325 |
---|---|
Wages and salaries | $ 28,730 |
Food and supplies | $ 87,530 |
Facility expenses | $ 34,975 |
Administrative expenses | $ 7,113 |
The spending variance for facility expenses in March would be closest to:
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