Gordin 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 May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
Actual results for May:
The spending variance for food and supplies in May would be closest to:
A) $840 U
B) $840 F
C) $1,044 F
D) $1,044 U

Question

Gordin 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 May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
 Actual results for May:
 The spending variance for food and supplies in May would be closest to:
A) $840 U 
B) $840 F 
C) $1,044 F 
D) $1,044 U

Quizplus · Accepted Answer

11eacbfc_c596_4ca5_8ffe_97606def095f_TB7552_00 Because the actual expense is greater than the flexible budget, the variance is unfavorable (U).

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