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Rhed Kennel uses tenantdays as its measure ofactivity: an animal housed in the kennel for one day is counted as one tenantday. During December, the
Rhed Kennel uses tenantdays as its measure ofactivity: an animal housed in the kennel for one day is counted as one tenantday. During December, the kennel budgeted for 4.300 tenantedays. but its actual level of activity was 4.250 tenantedays. 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 Variable element per month per tenant-day Revenue 3 6 $ 35.16 Wages and salaries $ 3,466 $ 8.96 Food and supplies 2,666 14.16 Facility expenses 9,466 5.66 Administrative expenses 7,466 6.86 Total expenses $ 22,266 $ 29.46 [Actual results for December: Revenue $ 148,435 Wages and salaries $ 41,516 Food and supplies $ 66,835 Facility expenses $ 33,366 Administrative expenses $ 8,846 The activity variance for administrative expenses in December would be closest to: The activity variance for administrative expenses in December would be closest to: Multiple Choice O $40 U O $40 F O $2,000 F O $2,000 U
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