Question
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 food and supplies in March would be closest to:
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