Rippelmeyer 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 June, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
-The activity variance for wages and salaries in June would be closest to:
A) $310 F
B) $110 F
C) $310 U
D) $110 U

Question

Rippelmeyer 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 June, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: 
-The activity variance for wages and salaries in June would be closest to:
A) $310 F 
B) $110 F 
C) $310 U 
D) $110 U

Quizplus · Accepted Answer

The activity variance is calculated by comparing the flexible budget to the static budget. If the flexible budget for wages and salaries is less than the static budget, it results in a favorable (F) variance. Here, $310 F indicates that the flexible budget was $310 less than the static budget.

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