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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,

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:

Fixed element per month Variable element per tenant-day
Revenue $ 31.70
Wages and salaries $ 2,100 $ 7.70
Food and supplies 900 11.20
Facility expenses 8,500 2.70
Administrative expenses 6,700 0.10
Total expenses $ 18,200 $ 21.70

The administrative expenses in the planning budget for February would be closest to:

a. $6,639

b. $6,713

c. $6,970

d. $6,973

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