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 2,290 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:

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

Step: 3

blur-text-image

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

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

4th Canadian Edition

1119709490, 9781119709497

More Books

Students also viewed these Accounting questions

Question

Find the limit. t3 + t 1 t sin lim ( te, 213 1

Answered: 1 week ago