# Roye Kennel: calculate pending variance in a month

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 3,300 tenant-days, but its actual level of activity was 3,340 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 — \$34.20 Wages and salaries \$2,200 \$7.20

 Expendables 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 September:

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

The spending variance for facility expenses in September would be closest to:

a. \$860 U

b. \$968 F

c. \$860 F

d. \$968 U

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