Paulis 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 February, the kennel budgeted for 5,000 tenant-days, but its actual level of activity was 5,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	31.50
Wages and salaries	$	4,000		$	7.50
Food and supplies		600			12.30
Facility expenses		9,000			4.50
Administrative expenses		8,800			0.30
Total expenses	$	22,400		$	24.60

Actual results for February:

Revenue	$	108,780
Wages and salaries	$	23,600
Food and supplies	$	36,800
Facility expenses	$	19,350
Administrative expenses	$	9,160

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

Multiple Choice

• $7,770 F

• $138 F

• $138 U

• $7,770 U