Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Galante 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,

Galante 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, Kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,580 tenant-days. 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 per month Variable element per tenant-day
Revenue $30.10
Wages and salaries $2,600 $6.10
Food and supplies 800 10.90
Facility expenses 7,600 3.10
Administrative expenses 7,400 0.10
Total expenses

$18,400

$20.20

Actual results for May:

Revenue $107,380
Wages and salaries $23,460
Food and supplies $36,786
Facility expenses $19,210
Administrative expenses $9,132

The activity variance for net operating income in May would be closest to:

$198 F

$1,552 U

$1,552 F

$198 U

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

10th Edition

B010IKDQZM

More Books

Students also viewed these Accounting questions

Question

what is the HDI for C 3 H 7 CL

Answered: 1 week ago