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

question 25

Multiple Choice

Smithj 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 3,500 tenant-days, but its actual level of activity was 3,490 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 spending variance for food and supplies in February would be closest to:

• A)$1,040 U
• B)$1,040 F
• C)$949 F
• D)$949 U