Question
TB MC Qu. 10-72 Gandrud Kennel uses tenant-days as... Gandrud Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for
TB MC Qu. 10-72 Gandrud Kennel uses tenant-days as...
Gandrud 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 June, the kennel budgeted for 2,820 tenant-days, but its actual level of activity was 2,800 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
Fixed element per month Variable element per tenant-day Revenue $ 41.50 Wages and salaries $ 3,650 $ 8.40 Food and supplies 1,685 16.20 Facility expenses 13,250 3.70 Administrative expenses 8,700 1.40 Total expenses $ 27,285 $ 29.70
The food and supplies in the flexible budget for June would be closest to:
$46,718
$47,294
$47,369
$47,045
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