Roye kennel uses tenant-days as its measure of activity an


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 4,400 tenant-days, but its actual level of activity was 4,450 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   $3,300     $8.30   
Food and supplies   2,300     14.80   
Facility expenses   8,800     3.80   
Administrative expenses     7,300     0.20   
Total expenses  
$21,700
$27.10   

Actual results for September:

Revenue   $138,230
Wages and salaries   $28,630
Food and supplies   $69,105
Facility expenses   $25,115
Administrative expenses   $7,103

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for September would be closest to:
$6,513 U
$6,103 F
$6,103 U
$6,513 F

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Financial Accounting: Roye kennel uses tenant-days as its measure of activity an
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