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

Multiple Choice

Tosta 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 May, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
-The activity variance for net operating income in May would be closest to:

A) $2,770 U
B) $720 U
C) $720 F
D) $2,770 F