Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 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:
Actual results for May:

-The wages and salaries in the planning budget for May would be closest to:
A) $25,070
B) $25,009
C) $23,919
D) $23,984

Question

Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 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:
  Actual results for May:
 
-The wages and salaries in the planning budget for May would be closest to:
A) $25,070 
B) $25,009 
C) $23,919 
D) $23,984

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $2,500 + ($6.10 × 3,700) = $25,070

Virgen Kennel Uses Tenant-Days as Its Measure of Activity; an Animal