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MC Qu. 142 Pearse Kennel uses tenant-days... Pearse 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 December, the kennel budgeted for 3000 tenant- days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed Variable element per element per tenant-day month $32.10 Revenue 2,400 7.00 Wages and salaries Food and supplies 900 11.30 8.600 Facility expenses 3.50 Administrative expenses. 6,700 0.30 Total expenses $18.600 Actual results for December: $97,978 Revenue $23,530 Wages and salaries Food and supplies $35,224 $19,780 Facility expenses Administrative expenses. $7,404 The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report for December would be closest to: O $640 F O $840 F O $640 U O $840 U

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