Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:
Actual results for March:
The revenue variance for March would be closest to:
A) $2,640 U
B) $2,640 F
C) $1,224 U
D) $1,224 F

Question

Dinham 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 March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:
 Actual results for March:
 The revenue variance for March would be closest to:
A) $2,640 U 
B) $2,640 F 
C) $1,224 U 
D) $1,224 F

Quizplus · Accepted Answer

11eacbfc_c5b7_1b13_8ffe_a9913b1284f5_TB7552_00 Because the actual revenue is less than the flexible budget, the variance is unfavorable (U).

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