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Business, 11.03.2020 03:15 ethangeibel93
Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
Fixed element per month Variable element per tenant-day
Revenue $ 35.40
Wages and salaries $ 3,000 $ 6.60
Food and supplies 400 12.20
Facility expenses 9,600 2.30
Administrative expenses 7,800 0.20
Total expenses $ 20,800 $ 21.30
Actual results for March:
Revenue $ 69,576
Wages and salaries $ 16,204
Food and supplies $ 25,008
Facility expenses $ 14,122
Administrative expenses $ 8,238
The spending variance for facility expenses in March would be closest to:
a.$78 F
b.$170 U
c.$78 U
d.$170 F
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