Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Actual results for November:

-The activity variance for wages and salaries in November would be closest to:
A) $454 F
B) $454 U
C) $54 F
D) $54 U

Question

Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
  Actual results for November:
 
-The activity variance for wages and salaries in November would be closest to:
A) $454 F 
B) $454 U 
C) $54 F 
D) $54 U

Quizplus · Accepted Answer

11ea7761_176e_c59b_81a5_772f760965bb_TB2580_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

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