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

question 396

Multiple Choice

Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:Data used in budgeting: Actual results for March:
The revenue variance for March would be closest to:

• A) $2,640 U
• B) $2,640 F
• C) $1,224 U
• D) $1,224 F

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Definitions:

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