Rhed 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 4,550 tenant-days, but its actual level of activity was 4,500 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:
| Fixed element per month | Variable element per tenant-day | ||||
| Revenue | – | $ | 35.60 | ||
| Wages and salaries | $ | 3,900 | $ | 9.40 | |
| Food and supplies | 2,250 | 14.60 | |||
| Facility expenses | 9,900 | 6.10 | |||
| Administrative expenses | 7,900 | 0.70 | |||
| Total expenses | $ | 23,950 | $ | 30.80 | |
Actual results for December:
| Revenue | $ | 159,355 |
| Wages and salaries | $ | 46,485 |
| Food and supplies | $ | 66,835 |
| Facility expenses | $ | 37,535 |
| Administrative expenses | $ | 9,865 |
The activity variance for administrative expenses in December would be closest to:
A. $35 U
B. $1220U
C. $35 F
D. $1220F
