uestion 6

Wales 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 February, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the planning budget for February would be closest to:

		$9,100
		$12,123
		$8,800
		$11,858

1 points

Question 7

Which of the following comparisons best isolates the impact that changes in operating efficiency have on performance?

		static planning budget and flexible budget
		static planning budget and actual results
		flexible budget and actual results
		master budget and static planning budget

1 points

Question 8

In a flexible budget performance report, actual costs should be compared to the flexible budget at the original budgeted activity level.

True

False

1 points

Question 9

A revenue variance is unfavorable if the actual revenue is less than the revenue in the static planning budget.

True

False

1 points

Question 10

A spending variance is the difference between the cost in the static planning budget and the actual amount of the cost for the period.

True

False