Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rhed 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 December,

Rhed 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 December, the kennel budgeted for 4,600 tenant-days, but its actual level of activity was 4,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Fixed element per month Variable element per tenant-day
Revenue - $ 35.70
Wages and salaries $ 4,000 $ 9.50
Food and supplies 2,300 14.70
Facility expenses 10,000 6.20
Administrative expenses 8,000 0.80
Total expenses $ 24,300 $ 31.20

Actual results for December:

Revenue $ 161,570
Wages and salaries $ 47,510
Food and supplies $ 68,065
Facility expenses $ 38,400
Administrative expenses $ 8,620

The activity variance for administrative expenses in December 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 And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

18th Edition

0137879199, 9780137879199

More Books

Students also viewed these Accounting questions