Roye Kennel: calculate revenue variance

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 3,200 tenant-days, but its actual level of activity was 3,250 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 — \$34.10 Wages and salaries \$2,100 \$7.10 Expendables 1,100 13.60 Facility expenses 7,600 2.60 Administrative expenses 6,100 0.20 Total expenses \$16,900 \$23.50

Actual results for September:

 Revenue \$107,351 Wages and salaries \$28,510 Expendables \$46,025 Facility expenses \$15,500 Administrative expenses \$7,091

The revenue variance for September would be closest to:

a. \$1,769 F

b. \$1,769 U

c. \$3,474 F

d. \$3,474 U

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