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Juenemann 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,
- Juenemann 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 3,800 tenant-days, but its actual level of activity was 3,770 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 |
|
| $ | 33.90 |
| |
Wages and salaries | $ | 2,900 |
| $ | 7.60 |
|
Food and supplies |
| 600 |
|
| 13.40 |
|
Facility expenses |
| 9,000 |
|
| 4.00 |
|
Administrative expenses |
| 7,500 |
|
| 0.30 |
|
Total expenses | $ | 20,000 |
| $ | 25.30 |
|
|
Actual results for December:
|
|
|
|
Revenue | $ | 132,193 |
|
Wages and salaries | $ | 32,662 |
|
Food and supplies | $ | 48,918 |
|
Facility expenses | $ | 23,040 |
|
Administrative expenses | $ | 8,931 |
|
The activity variance for administrative expenses in December would be closest to:
- $291 F
- $291 U
- $9 F
- $9 U
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