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

question 20

Multiple Choice

Nicolini 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 October, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 250 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The spending variance for food and supplies in October would be closest to:

• A)$600 F
• B)$5 F
• C)$600 U
• D)$5 U

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Definitions:

Government-backed Price Supports

Financial mechanisms provided by governments to maintain the market price of specific goods or commodities at a predetermined level.

Deficit Spending

The practice of spending more money than is taken in through revenues, leading to a government budget deficit, often financed by borrowing.

Demobilized Soldiers

Military personnel who are discharged back into civilian life after their service, often following the end of a war or military conflict.

Unemployment

The situation when individuals who are capable of working and are actively seeking employment are unable to find a job.