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

question 222

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:

Pragmatic Theory

A theory in philosophy that evaluates theories or beliefs in terms of the success of their practical application.

Correspondence Theory

A theory in epistemology and philosophy of truth stating that the accuracy of a statement is determined by how accurately it corresponds to the real world or facts.

Rationality

The quality of being based on or in accordance with reason or logic, often applied to thought processes and decision-making.

True Beliefs

Convictions or acceptances that are in accordance with reality or facts.