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 3,400 tenant-days, but its actual level of activity was 3,460 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Fixed Variable element per element per month tenant-day $0 $34.30 $ 2,300 $7.30 11 1,300 13.80 7,800 2.80 6,300 0.40 $ 17,700 $24.30 Revenue $ 115,625 28,530 Wages and salaries. Food and supplies $ 49,580 Facility expenses $ 16,500 Administrative expenses $ 7,093 The spending variance for facility expenses in March would be closest to:

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 3,400 tenant-days, but its actual level of activity was 3,460 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Fixed Variable element per element per month tenant-day $0 $34.30 $ 2,300 $7.30 11 1,300 13.80 7,800 2.80 6,300 0.40 $ 17,700 $24.30 Revenue $ 115,625 28,530 Wages and salaries. Food and supplies $ 49,580 Facility expenses $ 16,500 Administrative expenses $ 7,093 The spending variance for facility expenses in March would be closest to:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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