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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,
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 4,600 tenant-days, but its actual level of activity was 4,550 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 | - | $ | 35.70 | ||
Wages and salaries | $ | 4,000 | $ | 9.50 | |
Food and supplies | 2,300 | 14.70 | |||
Facility expenses | 10,000 | 6.20 | |||
Administrative expenses | 8,000 | 0.80 | |||
Total expenses | $ | 24,300 | $ | 31.20 | |
Actual results for December:
Revenue | $ | 161,570 |
Wages and salaries | $ | 47,510 |
Food and supplies | $ | 68,065 |
Facility expenses | $ | 38,400 |
Administrative expenses | $ | 8,620 |
The activity variance for administrative expenses in December would be closest to:
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