Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Roye 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 September,
Roye 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 September, Kennel budgeted for 5,100 tenant-days, but its actual level of activity was 5,140 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Fixed element per month | Variable element pertenant-day | |
Revenue | $35.60 | |
Wages and salaries | $2,300 | $9.00 |
Food and supplies | 1,500 | 15.50 |
Facility expenses | 7,900 | 4.50 |
Administrative expenses | 6,400 | 0.30 |
Total expenses | $18,100 | $29.30 |
Actual results for September:
Revenue | $170,525 |
Wages and salaries | $28,700 |
Food and supplies | $80,870 |
Facility expenses | $31,540 |
Administrative expenses | $7,110 |
The spending variance for facility expenses in September would be closest to:
$690 U$510 U$510 F$690 F
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started