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Malander 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 November,
Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element per month | Variable element per tenant-day | |
---|---|---|
Revenue | $ 0 | $ 28.00 |
Wages and salaries | $ 2,700 | $ 5.40 |
Food and supplies | 500 | 10.20 |
Facility expenses | 9,600 | 3.30 |
Administrative expenses | 6,600 | 0.20 |
Total expenses | $ 19,400 | $ 19.10 |
Actual results for November:
Revenue | $ 90,470 |
---|---|
Wages and salaries | $ 20,606 |
Food and supplies | $ 35,838 |
Facility expenses | $ 20,857 |
Administrative expenses | $ 7,518 |
The spending variance for food and supplies in November would be closest to:
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