Galante 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 May, Kennel budgeted for 4,200 tenant-days, but its actual level of activity was 4,180 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

The activity variance for net operating income in May would be closest to:

$174 F

$174 U

$2,714 U

$2,714 F

Galante 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 May, Kennel budgeted for 4,200 tenant-days, but its actual level of activity was 4,180 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting Fixed element Variable element per month per tenant-day Revenue $30.70 Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $3,200 600 8,200 8,000 $20,000 $6.70 11.50 3.70 0.10 $22.00 Actual results for May: Revenue $107,980 Wages and salaries Food and supplies Facility expenses Administrative expenses $23,520 $36,792 $19,270 $9,144 The activity variance for net operating income in May would be closest to O $174 F O $174 U O $2,714 U O $2.714 F