Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for administrative expenses in October would be closest to:
A) $2 F
B) $162 F
C) $162 U
D) $2 U

Question

Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
 
-The activity variance for administrative expenses in October would be closest to:
A) $2 F 
B) $162 F 
C) $162 U 
D) $2 U

Quizplus · Accepted Answer

11ea7761_1779_4d22_81a5_a7578f7b176d_TB2580_00 Because the flexible budget is greater than the planning budget, the variance is unfavorable (U).

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