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

question 406

Multiple Choice

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: The activity variance for net operating income in October would be closest to:

• A) $2,328 F
• B) $218 U
• C) $218 F
• D) $2,328 U

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