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 4,800 tenant-days, but its actual level of activity was 4,820 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: Fixed Variable element element per per month tenant-day Revenue $35.30 $ 2,000 $ 8.70 Wages and salaries Food and supplies 1,200 15.20 Facility expenses Administrative expenses 7,600 4.20 7,700 0.60 Total expenses $18,500 $28.70 Actual results for March: Revenue $145,135 Wages and salaries Food and supplies $ 28,670 $ 75,065 $ 27,230 Facility expenses Administrative expenses $ 7,107 The spending variance for food and supplies 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 4,800 tenant-days, but its actual level of activity was 4,820 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: Fixed Variable element element per per month tenant-day Revenue $35.30 $ 2,000 $ 8.70 Wages and salaries Food and supplies 1,200 15.20 Facility expenses Administrative expenses 7,600 4.20 7,700 0.60 Total expenses $18,500 $28.70 Actual results for March: Revenue $145,135 Wages and salaries Food and supplies $ 28,670 $ 75,065 $ 27,230 Facility expenses Administrative expenses $ 7,107 The spending variance for food and supplies 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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None
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None
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