Question 9

Neighbors 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 April, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	27.30
Wages and salaries	$	2,900		$	5.70
Food and supplies		400			8.30
Facility expenses		9,500			3.80
Administrative expenses		6,700			0.40
Total expenses	$	19,500		$	18.20

Actual results for April:

Revenue	$	82,088
Wages and salaries	$	20,112
Food and supplies	$	24,418
Facility expenses	$	21,538
Administrative expenses	$	8,094

The activity variance for net operating income in April would be closest to:

		$126 F
		$126 U
		$364 F
		$364 U