Pearse Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

Multiple Choice

Pearse 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

-The activity variance for net operating income in December would be closest to:

A) $640 F
B) $640 U
C) $200 U
D) $200 F