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stellarik [79]
3 years ago
10

Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Fixed element per month Variable element per
tenant-day
Revenue - $ 28.00
Wages and salaries $ 2,700 $ 5.40
Food and supplies 500 10.20
Facility expenses 9,600 3.30
Administrative expenses 6,600 0.20
Total expenses $ 19,400 $ 19.10
Actual results for November:
Revenue $ 90,470
Wages and salaries $ 20,606
Food and supplies $ 35,838
Facility expenses $ 20,857
Administrative
expenses $ 7,518
The revenue variance for November would be closest

A $658 U

B $760 U

C $760 F

D $658 F
Business
1 answer:
Nitella [24]3 years ago
5 0

Answer:

$4,450 unfavorable

Explanation:

The computation of the revenue variance is shown below:

As we know that

Revenue variance is

=  Flexible budget revenue - Actual revenue

where,

Flexible budget revenue is

= Actual level of activity × revenue element per tenant day

= 3,390 × $28

= $94,920

And, the actual revenue is $90,470

So, the revenue variance is

= $94,920 - $90,470

= $4,450 unfavorable

This is the answer but the same is not provided in the given options

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