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Dog 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,
Dog 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 3,400 tenant-days, but its actual level of activity was 3,460 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 | - | $ | 34.30 | ||
Wages and salaries | $ | 2,300 | $ | 7.30 | |
Food and supplies | 1,300 | 13.80 | |||
Facility expenses | 7,800 | 2.80 | |||
Administrative expenses | 6,300 | 0.40 | |||
Total expenses | $ | 17,700 | $ | 24.30 | |
Actual results for March:
Revenue | $ | 115,625 | |
Wages and salaries | $ | 28,530 | |
Food and supplies | $ | 49,580 | |
Facility expenses | $ | 16,500 | |
Administrative expenses | $ | 7,093 | |
The revenue variance for March would be closest to:
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