Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Barra Inc. uses tenant - days as its measure of activity; a person renting a room for one day is counted as one tenant -

Barra Inc. uses tenant-days as its measure of activity; a person renting a room for one day is counted as one tenant-day. During July, the company budgeted for 3,800 tenant-days, but its actual level of activity was 3,830 tenant-days. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Data used in budgeting:
Fixed element per month
Variable element per tenant-day
Revenue
0
$ 34.70
Wages and salaries
$ 2,700
$ 7.70
Food and supplies
1,700
14.20
Facility expenses
8,200
3.20
Administrative expenses
6,700
0.20
Total expenses
$ 19,300
$ 25.30
Actual results for July:
Revenue
$ 120,321
Wages and salaries
$ 28,570
Food and supplies
$ 56,975
Facility expenses
$ 19,989
Administrative expenses
$ 7,097
The revenue variance for July would be closest to:
Group of answer choices
$11,539 F
$11,539 U
$12,580 U
$12,580 F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington

9th Edition

0070434360, 978-0070434363

More Books

Students also viewed these Accounting questions

Question

Give details of the use of ICT in workforce planning

Answered: 1 week ago

Question

Explain the various meanings of and approaches to flexible working

Answered: 1 week ago