Roye Kennel: calculate pending variance in a month

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Question

Roye 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 September, Kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:

Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue	—	$34.20

Wages and salaries	$2,200	$7.20

Expendables	1,200	13.70
Facility expenses	7,700	2.70
Administrative expenses	6,200	0.30
Total expenses	$17,300	$23.90

Actual results for September:

Revenue	$111,226

Wages and salaries	$28,520
Expendables	$47,305
Facility expenses	$15,750
Administrative expenses	$7,092

The spending variance for facility expenses in September would be closest to:

a. $860 U

b. $968 F

c. $860 F

d. $968 U

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