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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 2,290 tenant-days, but its actual level of activity was 2,250 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 | $ | 37.10 | ||||
Wages and salaries | $ | 4,710 | $ | 8.20 | ||
Food and supplies | 1,360 | 10.00 | ||||
Facility expenses | 9,050 | 6.60 | ||||
Administrative expenses | 7,550 | 1.10 | ||||
Total expenses | $ | 22,670 | $ | 25.90 | ||
|
Actual results for March:
Revenue | $ | 82,885 | |
Wages and salaries | $ | 22,955 | |
Food and supplies | $ | 24,385 | |
Facility expenses | $ | 22,985 | |
Administrative expenses | $ | 10,090 | |
|
The food and supplies in the flexible budget for March would be closest to:
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