Question

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

Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	34.20
Wages and salaries	$	2,200		$	7.20
Food and supplies		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 March:

Revenue	$	111,226
Wages and salaries	$	28,520
Food and supplies	$	47,305
Facility expenses	$	15,750
Administrative expenses	$	7,092

The spending variance for food and supplies in March would be closest to:

Answer 1