Neighbors 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 3,000 tenant-days, but its actual level of activity was 2,960 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 activity variance for administrative expenses in April would be closest to:
A) $194 U
B) $16 U
C) $16 F
D) $194 F

Question

Neighbors 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 3,000 tenant-days, but its actual level of activity was 2,960 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 activity variance for administrative expenses in April would be closest to:
A) $194 U 
B) $16 U 
C) $16 F 
D) $194 F

Quizplus · Accepted Answer

11ea7761_177d_44e0_81a5_65119ed83362_TB2580_00 Because the flexible budget is less than the planning budget, the variance is favorable (F).

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