Roye Kennel: calculate spending 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 4,800 tenant-days, but its actual level of activity was 4,820 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	—	$35.30

Wages and salaries	$2,000	$8.70
Expendables	1,200	15.20
Facility expenses	7,600	4.20
Administrative expenses	7,700	0.60
Total expenses	$18,500	$28.70

Actual results for September:

Revenue

$145,135

Wages and salaries	$28,670
Expendables	$75,065
Facility expenses	$27,230
Administrative expenses	$7,107

The spending variance for expendables in September would be closest to:

$905 U
$905 F
$601 U
$601 F

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