Roye Kennel: calculate revenue variance

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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 3,200 tenant-days, but its actual level of activity was 3,250 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	—	$34.10

Wages and salaries	$2,100	$7.10
Expendables	1,100	13.60
Facility expenses	7,600	2.60
Administrative expenses	6,100	0.20
Total expenses	$16,900	$23.50

Actual results for September:

Revenue	$107,351

Wages and salaries	$28,510
Expendables	$46,025
Facility expenses	$15,500
Administrative expenses	$7,091

The revenue variance for September would be closest to:

a. $1,769 F

b. $1,769 U

c. $3,474 F

d. $3,474 U

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