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

question 310

Multiple Choice

Perla 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 2,200 tenant-days, but its actual level of activity was 2,160 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)$420 F
• B)$1,724 F
• C)$420 U
• D)$1,724 U

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