Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Perla 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 March,

Perla 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 March, the kennel budgeted for 2,280 tenant-days, but its actual level of activity was 2,240 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:

Fixed element per month Variable element per tenant-day
Revenue $ 36.60
Wages and salaries $ 5,370 $ 8.10
Food and supplies 1,220 9.80
Facility expenses 8,850 6.40
Administrative expenses 7,450 1.00
Total expenses $ 22,890 $ 25.30

Actual results for March:

Revenue $ 81,404
Wages and salaries $ 23,314
Food and supplies $ 23,692
Facility expenses $ 22,276
Administrative expenses $ 9,750

The spending variance for food and supplies in March would be closest to:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Audit Tool For Warfarin Therapy

Authors: Fatema Nuzhat, Malik Hasmat

1st Edition

3659426458, 978-3659426452

More Books

Students also viewed these Accounting questions