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

question 84

Multiple Choice

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:
Actual results for April:
The activity variance for administrative expenses in April would be closest to:

• A) $194 U
• B) $16 U
• C) $16 F
• D) $194 F

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Definitions:

Issuer

An entity that develops, registers, and sells securities to finance its operations.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify transactions.

Primarily Liable

Liable for paying the amount designated on an instrument when it is presented for payment.

Defaults

A failure to fulfill an obligation, especially to repay a loan on time.