Question
Vanderhyde 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 May,
Vanderhyde 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 May, the kennel budgeted for 3,350 tenant-days, but its actual level of activity was 3,395 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element per month Variable element per tenant-day Revenue $ 41.00 Wages and salaries $ 4,650 $ 7.70 Food and supplies 2,120 14.30 Facility expenses 14,120 5.70 Administrative expenses 11,200 1.40 Total expenses $ 32,090 $ 29.10
Actual results for May:
Revenue $ 143,435 Wages and salaries $ 32,137 Foods and supplies $ 49,324 Facility expenses $ 32,442 Administrative expenses $ 15,678
The administrative expenses in the planning budget for May would be closest to:
$15,562
$15,656
$15,906
$15,890
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