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

question 278

Multiple Choice

Clore 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 2,900 tenant-days, but its actual level of activity was 2,920 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 activity variance for administrative expenses in March would be closest to:

• A)$212 F
• B)$8 U
• C)$212 U
• D)$8 F

---

Definitions:

ESOs

Stock options provided to employees within their salary package permit them to acquire shares in the company at a fixed price, serving as part of their overall compensation.

Company Stock

Equity shares issued by a company representing ownership interests, giving shareholders voting rights and a claim on the company’s profits in the form of dividends.

ESOs

Employee Stock Options; a form of equity compensation granted by companies to their employees and executives, allowing them to purchase company shares at a set price for a certain period.