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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,
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 4,600 tenant-days, but its actual level of activity was 4,580 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 | - | $ | 31.10 | ||
Wages and salaries | $ | 3,600 | $ | 7.10 | |
Food and supplies | 200 | 11.90 | |||
Facility expenses | 8,600 | 4.10 | |||
Administrative expenses | 8,400 | 0.50 | |||
Total expenses | $ | 20,800 | $ | 23.60 | |
Actual results for February:
Revenue | $ | 108,380 |
Wages and salaries | $ | 23,560 |
Food and supplies | $ | 36,796 |
Facility expenses | $ | 19,310 |
Administrative expenses | $ | 9,152 |
The activity variance for net operating income in February would be closest to:
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