Neighbors 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 3,000 tenant-days, but its actual level of activity was 2,960 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 monthVariable element per tenant-dayRevenue - $27.30 Wages and salaries$2,900 $5.70Food and supplies 400 8.30Facility expenses 9,500 3.80Administrative expenses 6,700 0.40Total expenses$19,500 $18.20?Actual results for April: ?Revenue$82,088 Wages and salaries$20,112?Food and supplies$24,418?Facility expenses$21,538?Administrative
expenses$8,094???The activity variance for net operating income in April would be closest to:
A. $364 F
B. $126 U
C. $364 U
D. $126 F
Answer: C
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