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Nicolini 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 October,
Nicolini 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 October, the kennel budgeted for 2,210 tenant-days, but its actual level of activity was 2,260 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:
Fixed element per month | Variable element per tenant-day | |||||
Revenue | $ | 35.90 | ||||
Wages and salaries | $ | 2,970 | $ | 7.50 | ||
Food and supplies | 1,210 | 12.10 | ||||
Facility expenses | 10,440 | 2.90 | ||||
Administrative expenses | 8,730 | 0.30 | ||||
Total expenses | $ | 23,350 | $ | 22.80 | ||
|
Actual results for October:
Revenue | $ | 77,844 | |
Wages and salaries | $ | 18,965 | |
Food and supplies | $ | 27,951 | |
Facility expenses | $ | 17,679 | |
Administrative expenses | $ | 9,363 | |
The administrative expenses in the planning budget for October would be closest to:
$9,189
$9,363
$9,403
$9,393
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