Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Fixed element per monthVariable element per tenant-dayRevenue - $30.80      Wages and salaries$3,300 $6.10Food and supplies 600  10.10Facility expenses 8,800  3.60Administrative expenses 7,600  0.10Total expenses$20,300 $19.90?The activity variance for administrative expenses in October would be closest to:

A. $162 U
B. $2 U
C. $2 F
D. $162 F


Answer: B

Business

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