Rhed Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 16

Multiple Choice

Rhed 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 December, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:
Actual results for December:
The spending variance for facility expenses in December would be closest to:

• A) $120 U
• B) $100 F
• C) $120 F
• D) $100 U

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