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

question 150

Multiple Choice

Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February:
The activity variance for net operating income in February would be closest to:

• A) $264 F
• B) $264 U
• C) $236 F
• D) $236 U