Q10

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 4,250 tenant-days, but its actual level of activity was 4,200 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Fixed element Variable element per month per tenant-day $ 0 $ 35.00 $ 3,300 $ 8.80 1,950 14.00 9,300 5.50 7,300 0.70 $ 21,850 $ 29.00 Total expenses Actual results for December: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 146,280 $ 40,545 $ 59,665 $ 32,555 $ 8,305 The activity variance for administrative expenses in December would be closest to: Multiple Choice $35 U $1,970 U $35 F $1,970 F