hapter 9. Quiz Help Seve&Exits; TB MC Qu. 9-333 Dinham Kennel uses tenant-days..

Question

hapter 9. Quiz Help Seve&Exits; TB MC Qu. 9-333 Dinham Kennel uses tenant-days... ant-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 4,500 tenant-days, but its actual level of activity was 4.560 concerning the formulas used in its budgeting and its actual results for March: tenant-days. The kennel has provided the following data Data used in budgeting: Wages and salaries Food and supplies 3, 400 35.00 8.40 14.90 3.90 0.30 27.50 2, 400 8,900 7,400 Administrative expenses S 22,100 Actual results for March: G142,130 s 28, 640 nages and salaries

Explanation / Answer

Solution:

Budgeted facility expense for actual level of activity = $8,900 + (4560*$3.90) = $26,684

Actual facility expenses = $26,125

The spending variance for facility expense = Budgeted facility expense - Actual facility expense

= $26,684 - $26,125 = $559 F

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