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

question 115

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 4,000 tenant-days, but its actual level of activity was 4,040 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 spending variance for facility expenses in March would be closest to:

• A) $336 F
• B) $200 U
• C) $336 U
• D) $200 F

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Definitions:

Budget Constraint

The maximum range of goods and services a consumer can purchase based on their income and the cost of these products.

Budget Constraint

Represents the combinations of goods and services an individual can purchase given their income and the prices of those goods and services.

Clothing

Textile and fabric materials worn on the body, designed for reasons ranging from functional protection to cultural and personal expression.

Food

Any nutritious substance that people or animals eat or drink in order to maintain life and growth.