Dinhem Kennel uses tenent-days as s meesure ofactwty en animel housed in the ken

Question

Dinhem Kennel uses tenent-days as s meesure ofactwty en animel housed in the kennel for one dey is counted es one tenent-day During March, the kennel budgeted for 5,400 tenent-deys, but its ectuel level of activity wes 5,450 tenene-deys. The kennel has proviced the followwing deta conceming the formulas used in its budgeting and ts actual resuts for March Data used in budgeing: Fixed Variable per month tenant-day Wages and 8alaries Food and supplies Facility expenses Adninistrative expenses Total expenscs 2,600 ,800 8,200 6,700 $19.300 35.90 9.30 15.80 4.80 0.60 $30.50 Actual results for Merch Revenue Nages and aalarles Food and supplies Tacility expenses Adninistrative expenee8 $172,325 28,730 87,530 34,975 $ 7,113 The spending varience for food and supplies in Manch would be closest tor Mutiple Chaice $410 4380 U $380 F

Explanation / Answer

Food and supplies in flexible budget = 1800+(5450*15.8)= 87910 Spending variance for food and supplies = 87530-87910= 380 F Option 4 is correct

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