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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 3,200 tenant-days, but its actual level of activity was 3,250 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 | - | $ | 34.10 | ||
Wages and salaries | $ | 2,100 | $ | 7.10 | |
Food and supplies | 1,100 | 13.60 | |||
Facility expenses | 7,600 | 2.60 | |||
Administrative expenses | 6,100 | 0.20 | |||
Total expenses | $ | 16,900 | $ | 23.50 | |
Actual results for March:
Revenue | $ | 107,351 | |
Wages and salaries | $ | 28,510 | |
Food and supplies | $ | 46,025 | |
Facility expenses | $ | 15,500 | |
Administrative expenses | $ | 7,091 | |
The revenue variance for March would be closest to:
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