2.

Paulis 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 February, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,280 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Fixed Variable element element per per month tenant-day $29.80 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $ 2,300 500 7,300 7,100 $17,200 $ 5.80 10.60 2.80 0.40 $19.60 Actual results for February: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $107,080 $ 23,430 $ 36, 783 $ 19, 180 $ 9, 126 The net operating income in the planning budget for February would be closest to: Multiple Choice o $16,460 o $18,467 o $16,256 o $18.561 Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 8,300 units, but its actual level of activity was 8,350 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed Variable element element per per month unit $35.80 Revenue $ 0 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses 40,000 27,100 $67,100 $ 6.40 12.10 2.10 4.00 $24.60 Multiple Choice () $850 U $1,455 F $1,455 U $850 F