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 5,400 tenant-days, but its actual level of activity was 5,420 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 - $ 31.90 Wages and salaries $ 4,400 $ 7.90 Food and supplies 500 12.70 Facility expenses 8,800 4.90 Administrative expenses 7,800 0.20 Total expenses $ 21,500 $ 25.70 Actual results for February: Revenue $ 109,180 Wages and salaries $ 23,640 Food and supplies $ 36,804 Facility expenses $ 19,390 Administrative expenses $ 9,168 The activity variance for net operating income in February would be closest to:

Multiple Choice

• $8,198 F

• $124 F

• $124 U

• $8,198 U