Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dinham 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 March,

Dinham 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 March, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,630 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Fixed element per month Variable element per tenant-day
Revenue - $ 34.50
Wages and salaries $ 2,500 $ 7.50
Food and supplies 1,500 14.00
Facility expenses 8,000 3.00
Administrative expenses 6,500 0.60
Total expenses $ 18,500 $ 25.10

Actual results for March:

Revenue $ 121,234
Wages and salaries $ 28,550
Food and supplies $ 53,125
Facility expenses $ 18,250
Administrative expenses $ 7,095

The spending variance for facility expenses in March would be closest to:

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

Students also viewed these Accounting questions