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Paulis 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 February,
Paulis 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 February, the kennel budgeted for 5,100 tenant-days, but its actual level of activity was 5,120 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Fixed Variable cost per cost per month tenant-day Revenue Wages and salaries Food and supplies $ 4,100 $31.60 $ 7.60 700 12.40 Facility expenses 9,100 4.60 Administrative expenses 8,900 0.40 Total expenses $22,800 $25.00 Actual results for February: Revenue $108,880 Wages and salaries $ 23,610 Food and supplies $ 36,801 Facility expenses $ 19,360 Administrative expenses $ 9,162 The net operating income in the flexible budget for February would be closest to: Administrative expenses $ 9,162 The net operating income in the flexible budget for February would be closest to: Multiple Choice $10,992 $19,947 $10,860 $19,853 Check
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