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

question 202

Multiple Choice

Gordin 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 May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
Actual results for May:
The activity variance for administrative expenses in May would be closest to:

• A) $2 F
• B) $2 U
• C) $138 U
• D) $138 F

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Definitions:

Accurate

The degree to which information, measurement, or representation is exact and free from error.

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Objectives or goals aimed at growth, improvement, or progress, especially in personal, professional, or organizational contexts.

Formal Performance

The evaluation of an employee's work based on established criteria and procedures within a professional setting.

Confidential

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