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

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Accounting

Paulis Kennel uses tenant-days as its measure of activity; ananimal housed in the kennel for one day is counted as onetenant-day. During February, the kennel budgeted for 2,500tenant-days, but its actual level of activity was 2,480tenant-days. The kennel has provided the following data concerningthe formulas used in its budgeting and its actual results forFebruary:
Data used in budgeting:
Fixed element per month Variable element per tenant-day
Revenue - $ 35.30
Wages and salaries $ 2,500 $ 5.90
Food and supplies 400 13.80
Facility expenses 8,900 3.40
Administrative expenses 7,800 0.40
Total expenses $ 19,600 $ 23.50
Actual results for February:
Revenue $ 85,654
Wages and salaries $ 16,992
Food and supplies $ 33,084
Facility expenses $ 16,682
Administrative expenses $ 8,732
The activity variance for net operating income in February wouldbe closest to:
Garrison 16e Rechecks 2018-06-07
Multiple Choice
$236 U
$264 F
$236 F
$264 U

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Ans Option a 236 U Calculations Sales Activity Variance Report Flexible budget Activity Variance Planning budget Tenantdays 2480 2500 Revenue a 87544 706 U 88250 Expenses Wages and salaries 17132 118 F 17250 Food and supplies 34624 276 F See Answer

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	Fixed element per month		Variable element per tenant-day
Revenue		-	$	35.30

Wages and salaries	$	2,500	$	5.90
Food and supplies		400		13.80
Facility expenses		8,900		3.40
Administrative expenses		7,800		0.40
Total expenses	$	19,600	$	23.50


Revenue	$	85,654
Wages and salaries	$	16,992
Food and supplies	$	33,084
Facility expenses	$	16,682
Administrative expenses	$	8,732