Rhed 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 December, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
Actual results for December:

-The activity variance for administrative expenses in December would be closest to:
A) $20 U
B) $220 U
C) $20 F
D) $220 F

Question

Rhed 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 December, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
  Actual results for December:
 
-The activity variance for administrative expenses in December would be closest to:
A) $20 U 
B) $220 U 
C) $20 F 
D) $220 F

Quizplus · Accepted Answer

11ea7761_176b_1d0e_81a5_cfd18f73c387_TB2580_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

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