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

question 104

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 overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to:

• A)$1, 055 U
• B)$970 U
• C)$970 F
• D)$1, 055 F

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