Question
Leaphart 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,
Leaphart 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 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
FIXED ELEMENT PER MONTH:
Revenue..-
Wages and salaries..$3,600
Food and supplies$700
Facility expenses$9,100
Admin expenses..$6,200
Total expenses.$19,600
VARIABLE ELEMENT PER TENANT DAY:
Revenue..$31.10
Wages and salaries..$5.40
Food and supplies$12.40
Facility expenses$2.00
Admin expenses..$0.40
Total expenses.$20.20
The wages and salaries in the planning budget for May would be closest to:
$18,344 | ||
$18,606 | ||
$18,720 | ||
$18,936 Please show all work |
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