Question

Dog 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 3,400 tenant-days, but its actual level of activity was 3,460 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		-		$	34.30
Wages and salaries	$	2,300		$	7.30
Food and supplies		1,300			13.80
Facility expenses		7,800			2.80
Administrative expenses		6,300			0.40
Total expenses	$	17,700		$	24.30

Actual results for March:

Revenue	$	115,625
Wages and salaries	$	28,530
Food and supplies	$	49,580
Facility expenses	$	16,500
Administrative expenses	$	7,093

The revenue variance for March would be closest to:

Answer 1