Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:
Actual results for April:
The activity variance for wages and salaries in April would be closest to:
A) $128 U
B) $342 F
C) $128 F
D) $342 U

Question

Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:
 Actual results for April:
 The activity variance for wages and salaries in April would be closest to:
A) $128 U 
B) $342 F 
C) $128 F 
D) $342 U

Quizplus · Accepted Answer

11eacbfc_c5a0_5f10_8ffe_3fb815dc1b40_TB7552_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

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