The spending variance for food and supplies in April would be closest to:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:
Data used in budgeting:
| Fixed element per month | Variable element per tenant-day | ||||
| Revenue | - | $ | 33.80 | ||
| Wages and salaries | $ | 3,100 | $ | 6.40 | |
| Food and supplies | 1,000 | 14.40 | |||
| Facility expenses | 9,100 | 3.40 | |||
| Administrative expenses | 6,500 | 0.40 | |||
| Total expenses | $ | 19,700 | $ | 24.60 | |
Actual results for April:
| Revenue | $ | 118,524 | |
| Wages and salaries | $ | 27,122 | |
| Food and supplies | $ | 51,982 | |
| Facility expenses | $ | 20,852 | |
| Administrative expenses | $ | 8,052 |
The spending variance for food and supplies in April would be closest to:
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