Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 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 spending variance for food and supplies in April would be closest to:
A) $2,010 U
B) $2,298 F
C) $2,010 F
D) $2,298 U

Question

Meinke 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 3,700 tenant-days, but its actual level of activity was 3,680 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 spending variance for food and supplies in April would be closest to:
A) $2,010 U 
B) $2,298 F 
C) $2,010 F 
D) $2,298 U

Quizplus · Accepted Answer

11ea7761_1776_b503_81a5_f7aa3fa4bcb6_TB2580_00 Because the actual expense is less than the flexible budget, the variance is favorable (F).

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