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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 3,600 tenant-days, but its actual level of activity was 3,630 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 | - | $ | 34.50 | ||
Wages and salaries | $ | 2,500 | $ | 7.50 | |
Food and supplies | 1,500 | 14.00 | |||
Facility expenses | 8,000 | 3.00 | |||
Administrative expenses | 6,500 | 0.60 | |||
Total expenses | $ | 18,500 | $ | 25.10 | |
Actual results for March:
Revenue | $ | 121,234 | |
Wages and salaries | $ | 28,550 | |
Food and supplies | $ | 53,125 | |
Facility expenses | $ | 18,250 | |
Administrative expenses | $ | 7,095 | |
The spending variance for facility expenses in March would be closest to:
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