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 2,000 tenant-days, but its actual level of activity was 2,040 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 element per month Variable element per tenant-dayRevenue   $35.40Wages and salaries$3,000 $6.60Food and supplies 400  12.20Facility expenses 9,600  2.30Administrative expenses 7,800  0.20Total expenses$20,800 $21.30?Actual results for March:  Revenue$69,576 Wages and salaries$16,204 Food and supplies$25,008 Facility expenses$14,122 Administrative expenses$8,238 ?The

spending variance for facility expenses in March would be closest to:

A. $170 F
B. $170 U
C. $78 U
D. $78 F


Answer: A

Business

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