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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 3,800 tenant-days, but its actual level of activity was 3,830 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 | - | $ | 34.70 | ||
Wages and salaries | $ | 2,700 | $ | 7.70 | |
Food and supplies | 1,700 | 14.20 | |||
Facility expenses | 8,200 | 3.20 | |||
Administrative expenses | 6,700 | 0.20 | |||
Total expenses | $ | 19,300 | $ | 25.30 | |
Actual results for March:
Revenue | $ | 120,321 | |
Wages and salaries | $ | 28,570 | |
Food and supplies | $ | 56,975 | |
Facility expenses | $ | 19,989 | |
Administrative expenses | $ | 7,097 | |
The spending variance for food and supplies in March would be closest to:
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