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 3,430 tenant-days, but its actual level of activity was 3,483 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 | $ | 49.00 | ||||
| Wages and salaries | $ | 4,800 | $ | 8.50 | ||
| Food and supplies | 2,200 | 15.90 | ||||
| Facility expenses | 10,400 | 7.30 | ||||
| Administrative expenses | 8,350 | 3.00 | ||||
| Total expenses | $ | 25,750 | $ | 34.70 | ||
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Actual results for May:
| Revenue | $ | 175,067 | |
| Wages and salaries | $ | 35,871 | |
| Foods and supplies | $ | 56,115 | |
| Facility expenses | $ | 34,716 | |
| Administrative expenses | $ | 18,484 | |
| The net operating income in the planning budget for May would be closest to: A $23,299 B $29,304 C $23,715 D $29,768 | |||
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Executive Roadmap To Fraud Prevention And Internal Control Creating A Culture Of Compliance
Authors: Joel T. Bartow, Martin T. Biegelman
2nd Edition
1118004582, 9781118004586
