Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gandrud 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 June,

Gandrud 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 June, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

Fixed element per month Variable element per tenant-day
Revenue $37.10
Personnel expenses $3,400 $7.30
Medical supplies $1,200 14.00
Occupancy expenses $9,600 2.60
Administrative expenses $7,700 0.30
Total Expenses $21,900.00

$24.20

The food and supplies in the flexible budget for June would be closest to: A. $36,993 B. $37,569 C. $37,600 D. $37,320

The facility expenses in the flexible budget for June would be closest to: A. $16,308 B. $16,360 C. $16,223 D. $15,974

The net operating income in the flexible budget for June would be closest to: A. $11,640 B. $14,332 C. $11,382 D. $14,113

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

Auditing And Assurance Services

Authors: Alvin Arens, Randal Elder, Mark Beasley

14th Edition

1256560812, 9781256560814

More Books

Students also viewed these Accounting questions