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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 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:
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:
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