Roye 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 September, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,330 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:
Actual results for September:
-The revenue variance for September would be closest to:
A)$1,789 U
B)$2,830 U
C)$2,830 F
D)$1,789 F

Question

Roye 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 September, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,330 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

Actual results for September:

-The revenue variance for September would be closest to:

Data used in budgeting:
 Actual results for September: 
-The revenue variance for September would be closest to:
A)$1,789 U 
B)$2,830 U 
C)$2,830 F 
D)$1,789 F

Quizplus · Accepted Answer

The revenue variance is calculated as the difference between actual revenue and budgeted revenue. The choice $2,830 U indicates an unfavorable variance, meaning actual revenue was less than budgeted revenue by $2,830.

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