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Gordin 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,
Gordin 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, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
The spending variance for food and supplies in May would be closest to:
a) $840 U b) $840 F c) $1,044 F d) $1,044 U
Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed element Variable element per month per tenant-day $ 0 $ 27.60 $ 2,000 $ 5.20 800 10.20 8,500 3.70 6,000 0.10 $ 17,300 $ 19.20 Actual results for May: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 86, 322 $ 17,984 $ 32,444 $ 19,554 $ 6,162Step by Step Solution
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