Question
Chegg Expert, please help with the following. Thank you in advance for your help. I will upvote your knowledge provided! Stent Kennel uses tenant-days as
Chegg Expert, please help with the following. Thank you in advance for your help. I will upvote your knowledge provided!
Stent 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 3,000 tenant-days, but its actual level of activity was 2,950 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
Fixed per month | Variable per tenant-day | |
Revenue | $29.20 | |
Wages/Salaries | $3,200 | $6.60 |
Expendables | $900 | $10.00 |
Facility Expense | $8,500 | $2.50 |
Admin Expenses | $7,900 | $0.40 |
Total Expenses | $20,500 | $19.50 |
Actual results for February were:
Revenue | $83,970 |
Wages & Salaries | $23,780 |
Expendables | $30,790 |
Facility Expense | $16,005 |
Admin Expenses | $9,250 |
A) The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be:
B) The net operating income in the flexible budget for February would be
C) Expendables in the flexible budget for February would be:
D) The facility expenses in the flexible budget for February would be:
E) The Admin Expenses in the flexible budget for February would be:
F) The wages/salaries in the flexible budget for February would be:
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