Answered step by step
Verified Expert Solution
Link Copied!

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:

$6,639

$6,973

$6,970

$6,713

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Objective Questions And Explanations

Authors: Irvin N. Gleim

7th Edition

0917539664, 978-0917539664

More Books

Students also viewed these Accounting questions

Question

T F Radio advertising off ers a high degree of selectivity.

Answered: 1 week ago

Question

fscanf retums a special value EOF that stands for...

Answered: 1 week ago

Question

The nature and importance of the global marketplace.

Answered: 1 week ago