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 spending variance for facility expenses in March would be closest to:
A) $78 F
B) $170 U
C) $78 U
D) $170 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 spending variance for facility expenses in March would be closest to:
A) $78 F 
B) $170 U 
C) $78 U 
D) $170 F

Quizplus · Accepted Answer

11eacbfc_c5b7_6939_8ffe_738d41d18ba9_TB7552_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

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