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 food and supplies in March would be closest to:
A) $208 F
B) $280 U
C) $208 U
D) $280 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 food and supplies in March would be closest to:
A) $208 F 
B) $280 U 
C) $208 U 
D) $280 F

Quizplus · Accepted Answer

11ea7761_1786_e207_81a5_35024811643c_TB2580_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