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aulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel...

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Accounting

aulis 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 February, the kennel budgeted for 5,400 tenant-days, but its actual level of activity was 5,420 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

Fixed element per month Variable element per tenant-day
Revenue $ 0 $ 31.90
Wages and salaries $ 4,400 $ 7.90
Food and supplies 500 12.70
Facility expenses 8,800 4.90
Administrative expenses 7,800 0.20
Total expenses $ 21,500 $ 25.70

Actual results for February:

Revenue $ 109,180
Wages and salaries $ 23,640
Food and supplies $ 36,804
Facility expenses $ 19,390
Administrative expenses $ 9,168

The activity variance for net operating income in February would be closest to:

A: $124 U

B: $8,198 F

C: $124 F

D: $8,198 U

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