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

question 151

Multiple Choice

Rhed 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 December, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Actual results for December:

-The spending variance for facility expenses in December would be closest to:

• A) $120 U
• B) $100 F
• C) $120 F
• D) $100 U

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Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent in the violation of a law or regulation.

Odometer

A device used in vehicles to measure the distance traveled.

Commercial Impracticability

A doctrine that excuses the performance of a contract when an unforeseen event makes it excessively burdensome or difficult to carry out as agreed.

Fraudulent Misrepresentation

False statements made knowingly, without belief in their truth, or recklessly, with intent to deceive and induce another to enter into a contract.