Question
Ordway 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 June,
Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting:
| Fixed element per month | Variable element per tenant-day | ||||
Revenue |
|
| $ | 35.40 |
| |
Wages and salaries | $ | 3,200 |
| $ | 6.80 |
|
Food and supplies |
| 500 |
|
| 9.90 |
|
Facility expenses |
| 9,300 |
|
| 4.80 |
|
Administrative expenses |
| 6,200 |
|
| 0.20 |
|
Total expenses | $ | 19,200 |
| $ | 21.70 |
|
Actual results for June:
|
|
|
|
Revenue | $ | 73,868 |
|
Wages and salaries | $ | 17,116 |
|
Food and supplies | $ | 21,883 |
|
Facility expenses | $ | 19,656 |
|
Administrative expenses | $ | 6,624 |
|
The wages and salaries in the planning budget for June would be closest to:
A) $17,480
B) $17,116
C) $17,364
D) $17,276
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