Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Grohs 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 December,
Grohs 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 December, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,530 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 | - | $ | 33.00 | ||
Wages and salaries | $ | 3,800 | $ | 7.90 | |
Food and supplies | 1,000 | 11.60 | |||
Facility expenses | 8,600 | 2.20 | |||
Administrative expenses | 6,200 | 0.20 | |||
Total expenses | $ | 19,600 | $ | 21.90 | |
The food and supplies in the flexible budget for December would be closest to:
Multiple Choice
$30,000
$30,348
$29,791
$30,510
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started