Legard 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 January, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:
-The revenue variance for January would be closest to:
A) $750 U
B) $40 U
C) $40 F
D) $750 F

Question

Legard 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 January, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: 
-The revenue variance for January would be closest to:
A) $750 U 
B) $40 U 
C) $40 F 
D) $750 F

Quizplus · Accepted Answer

The revenue variance is the difference between the actual revenue and the budgeted revenue. The actual revenue for January is $10,000, and the budgeted revenue for January is $9,250. Therefore, the revenue variance for January is $10,000 - $9,250 = $750.

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