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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 | 0 | $ 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 revenue variance for March would be closest to:
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