Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started