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

question 416

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

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