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

question 285

Multiple Choice

Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 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 spending variance for food and supplies in April would be closest to:

• A) $2,010 U
• B) $2,298 F
• C) $2,010 F
• D) $2,298 U

---

Definitions:

Incentive

Anything that offers rewards to people to change their behavior.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a certain price.

Quantity Supplied

The quantity of a product that sellers are prepared and capable of offering for sale at a certain price during a defined timeframe.

Excess Demand

A situation where the quantity demanded of a good or service exceeds the quantity supplied at the current price, leading to upward pressure on prices.