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Perla 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 March,
Perla 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 March, the kennel budgeted for 2,280 tenant-days, but its actual level of activity was 2,240 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:
Fixed element per month | Variable element per tenant-day | |||||
Revenue | $ | 36.60 | ||||
Wages and salaries | $ | 5,370 | $ | 8.10 | ||
Food and supplies | 1,220 | 9.80 | ||||
Facility expenses | 8,850 | 6.40 | ||||
Administrative expenses | 7,450 | 1.00 | ||||
Total expenses | $ | 22,890 | $ | 25.30 | ||
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Actual results for March:
Revenue | $ | 81,404 | |
Wages and salaries | $ | 23,314 | |
Food and supplies | $ | 23,692 | |
Facility expenses | $ | 22,276 | |
Administrative expenses | $ | 9,750 | |
The spending variance for food and supplies in March would be closest to:
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