Neighbors 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 3,000 tenant-days, but its actual level of activity was 2,960 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) $228 F
B) $112 F
C) $228 U
D) $112 U

Question

Neighbors 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 3,000 tenant-days, but its actual level of activity was 2,960 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) $228 F 
B) $112 F 
C) $228 U 
D) $112 U

Quizplus · Accepted Answer

11eacbfc_c5aa_9794_8ffe_2342c2e91e40_TB7552_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

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