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 3,900 tenant-days, but its actual level of activity was 3,880 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 per month	Variable element per tenant-day
Revenue		$30.40
Wages and salaries	$2,900	$6.40
Food and supplies	300	11.20
Facility expenses	7,900	3.40
Administrative expenses	7,700	0.40
Total expenses	$18,800	$21.40

Actual results for May:

Revenue	$107,680
Wages and salaries	$23,490
Food and supplies	$36,789
Facility expenses	$19,240
Administrative expenses	$9,138

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

$180 F

$2,723 F

$2,723 U

$180 U