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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 2,230 tenant-days, but its actual level of activity was 2,190 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 | $ | 34.10 | ||||
Wages and salaries | $ | 3,330 | $ | 7.60 | ||
Food and supplies | 1,050 | 8.80 | ||||
Facility expenses | 9,100 | 5.40 | ||||
Administrative expenses | 10,850 | 0.50 | ||||
Total expenses | $ | 24,330 | $ | 22.30 | ||
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Actual results for March:
Revenue | $ | 74,149 | |
Wages and salaries | $ | 19,799 | |
Food and supplies | $ | 20,817 | |
Facility expenses | $ | 20,041 | |
Administrative expenses | $ | 11,980 | |
The revenue variance for March would be closest to:
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