Reference no: EM132615513

Dinham Kennel uses tenant-days as its measure of activity, an animal hospital housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 3,800 tenant-days. But its actual level of activity was 3,830 tenant days.

The Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:

                                                Fixed element per month                    Variable element per tenant-day

Revenue                                           -                                                   $34.70

Wages and Salaries                           $2,700                                                $7.70

Food and Supplies                            $1,700                                               $14.20

Facility Expenses                               $8,200                                               $3.20

Admin Expenses                                  $6,700                                                $.20

Total Expenses                                   $19,300                                           $25.30

Actual results for March:

Revenue $120,321

Wages and Salaries $28,570

Food and Supplies $56,975

Facility Expenses $19,989

Admin Expenses $7,097

Problem 1: The revenue variance for March would be:

Option A. $11,539 U

Option B. $12,580 U

Option C. $12,580 F

Option D. $11,539 F