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Razor 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 November,

Razor 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 November, the kennel budgeted for 3,230 tenant-days, but its actual level of activity was 3,250 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue

0

$31.90

Wages and salaries $2,900 $6.00
Expendables 530 10.00
Facility expenses 9,400 3.30
Administrative expenses 7,100 0.50
Total expenses

$19,930

$19.80


Actual results for November:
Revenue $96,600
Wages and salaries $23,800
Expendables $36,500
Facility expenses $16,900
Administrative expenses $8,800

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for November would be closest to?

$8,553 U
$8,795 F
$8,553 F
$8,795 U

Show Work please.

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