Please help me solve this question. Thank you

1. Skoff Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for March.

	Fixed Element per Month			Variable Element per Container Refurbished		Actual Total for March
Revenue				$	4,000	$	130,000
Employee salaries and wages	$	42,700		$	1,000	$	75,600
Refurbishing materials				$	600	$	18,800
Other expenses	$	37,900				$	38,400

When the company prepared its planning budget at the beginning of March, it assumed that 35 containers would have been refurbished. However, 32 containers were actually refurbished during March.

The activity variance for Other expenses for March would have been closest to:

Multiple Choice

$0

$4,100 U

$500 F

$500 U

2. Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 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 element per month			Variable element per tenant-day
Revenue		-		$	33.90
Wages and salaries	$	2,200		$	7.70
Food and supplies		1,400			12.90
Facility expenses		8,200			4.40
Administrative expenses		6,200			0.40
Total expenses	$	18,000		$	25.40

Actual results for December:

Revenue	$	122,235
Wages and salaries	$	30,575
Food and supplies	$	47,455
Facility expenses	$	24,360
Administrative expenses	$	7,460

The activity variance for administrative expenses in December would be closest to:

Multiple Choice

$20 U

$220 U

$20 F

$220 F