only answer if you will answer the following.

1. Rhed 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 4,500 tenant-days, but its actual level of activity was 4,450 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:

	Fixed element per month	Variable element per tenant-day
Revenue	$ 0	$ 35.50
Wages and salaries	$ 3,800	$ 9.30
Food and supplies	2,200	14.50
Facility expenses	9,800	6.00
Administrative expenses	7,800	0.60
Total expenses	$ 23,600	$ 30.40

Actual results for December:

Revenue	$ 157,150
Wages and salaries	$ 45,470
Food and supplies	$ 65,615
Facility expenses	$ 36,680
Administrative expenses	$ 9,300

The activity variance for administrative expenses in December would be closest to:

Multiple Choice

• $30 F

• $1,200 U

• $1,200 F

• $30 U

2. Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

• Sales are budgeted at $390,000 for November, $370,000 for December, and $360,000 for January.
• Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
• The cost of goods sold is 80% of sales.
• The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $24,500.
• Monthly depreciation is $15,500.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 20,500
Accounts receivable	70,500
Merchandise inventory	218,400
Property, plant and equipment, net of $572,500 accumulated depreciation	1,094,500
Total assets	$ 1,403,900
Liabilities and Stockholders' Equity
Accounts payable	$ 254,500
Common stock	820,500
Retained earnings	328,900
Total liabilities and stockholders' equity	$ 1,403,900

Expected cash collections in December are:

Multiple Choice

• $148,000

• $234,000

• $382,000

• $370,000