Question
11 - Virgen Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one
11 - Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed Element Variable element per Month per tenant-day Revenue $26.40 Wages and salaries 2,500 $6.10 Food and supplies 1,300 9.70 Facility expenses 8,600 2.60 Administrative expenses 6,800 0.40 Total expenses 19,200 $18.80 Actual results for May: Revenue $92,626 Wages and salaries $23,919 Food and supplies $37,833 Facility expenses $18,594 Administrative expenses 8,386 The administrative expenses in the planning budget for May would be closest to: A) $8,409 B) $8,386 C) $8,280 D) $8,276
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