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 3,300 tenant-days, but its actual level of activity was 3,280 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:

Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	29.80
Wages and salaries	$	2,300		$	5.80
Food and supplies		500			10.60
Facility expenses		7,300			2.80
Administrative expenses		7,100			0.40
Total expenses	$	17,200		$	19.60

Actual results for February:

Revenue	$	107,080
Wages and salaries	$	23,430
Food and supplies	$	36,783
Facility expenses	$	19,180
Administrative expenses	$	9,126

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

Multiple Choice

• $2,101 U

• $204 F

• $2,101 F

• $204 U