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

question 265

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 spending variance for facility expenses in March would be closest to:

• A)$730 U
• B)$730 F
• C)$820 U
• D)$820 F

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Definitions:

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits through to shareholders for federal tax purposes.

Alimony

Financial support paid by one ex-spouse to the other after divorce or separation, often mandated by the court.

Tax Ramifications

The effects or consequences that certain financial decisions or business transactions have on an individual's or entity's tax liability.

Periodic Payments

Regular payments received over a period of time, such as annuities, pensions, or dividends.