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 revenue variance for November would be closest to:
A) $4,450 F
B) $4,730 U
C) $4,730 F
D) $4,450 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 revenue variance for November would be closest to:
A) $4,450 F 
B) $4,730 U 
C) $4,730 F 
D) $4,450 U

Quizplus · Accepted Answer

11ea7761_176e_ecac_81a5_29da9fdf13cd_TB2580_00 Because the actual revenue is less than the flexible budget, the variance is unfavorable (U).

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