Lutts 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 November, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,850 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: 
-The administrative expenses in the planning budget for November would be closest to:
Definitions:
Variable Cost
Costs that change in proportion to the level of production or activity in a business.
Variable Cost Method
A pricing strategy in which the price is based on the variable costs of producing a good or service, not including fixed costs.
Cost-Plus Approach
A pricing strategy where a fixed percentage or fixed amount is added to the cost of producing a product to determine its sale price.
Total Cost Method
An accounting approach that sums up all costs associated with the production and sale of goods or services to determine total expense.
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