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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,
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 3,600 tenant-days, but its actual level of activity was 3,580 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 | $30.10 | |
Wages and salaries | $2,600 | $6.10 |
Food and supplies | 800 | 10.90 |
Facility expenses | 7,600 | 3.10 |
Administrative expenses | 7,400 | 0.10 |
Total expenses | $18,400 | $20.20 |
Actual results for May:
Revenue | $107,380 |
Wages and salaries | $23,460 |
Food and supplies | $36,786 |
Facility expenses | $19,210 |
Administrative expenses | $9,132 |
The activity variance for net operating income in May would be closest to:
$198 F
$1,552 U
$1,552 F
$198 U
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