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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:
$6,639
$6,973
$6,970
$6,713
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