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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 4,500 tenant-days, but its actual level of activity was 4,480 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 $31.00 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $ 3,500 900 8,500 8,300 $21,200 $ 7.00 11.80 4.00 0.40 $23.20 Actual results for February Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 108,280 $ 23,550 $ 36,795 $ 19,300 $ 9,150 The activity variance for net operating Income In February would be closest to: Multiple Choice O $5,585 F O $156 U $156 F O $5.585 U
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