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

question 129

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 administrative expenses in October would be closest to:

• A) $2 F
• B) $162 F
• C) $162 U
• D) $2 U