Zenon 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 July, the kennel budgeted for 3,470 tenant-days, but its actual level of activity was 3,430 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue				$	36.10
Wages and salaries	$	3,450		$	6.80
Food and supplies		1,185			11.60
Facility expenses		8,960			8.30
Administrative expenses		7,060			2.10
Total expenses	$	20,655		$	28.80

Actual results for July:

Revenue	$	121,123
Wages and salaries	$	26,219
Food and supplies	$	40,418
Facility expenses	$	36,774
Administrative expenses	$	14,748

The facility expenses in the flexible budget for July would be closest to:

a. $37,625

b. $37,429

c. $37,556

d. $38,166