Item 7 Item 7 Rhed 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 December, the kennel budgeted for 4,100 tenant-days, but its actual level of activity was 4,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:

Fixed element per month Variable element per tenant-day Revenue - $ 34.70 Wages and salaries $ 3,000 $ 8.50 Food and supplies 1,800 13.70 Facility expenses 9,000 5.20 Administrative expenses 7,000 0.40 Total expenses $ 20,800 $ 27.80 Actual results for December: Revenue $ 139,880 Wages and salaries $ 37,745 Food and supplies $ 56,215 Facility expenses $ 30,200 Administrative expenses $ 8,380 The activity variance for administrative expenses in December would be closest to:

$260F

$260 U

$20 F

$20 U