Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: The net operating income in the flexible budget for June would be closest to:
A)$8,713
B)$9,159
C)$8,466
D)$9,570

Question

Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting:  Actual results for June:  The net operating income in the flexible budget for June would be closest to:
A)$8,713 
B)$9,159 
C)$8,466 
D)$9,570

Quizplus · Accepted Answer

The Answer of Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting:  Actual results for June:  The net operating income in the flexible budget for June would be closest to:
A)$8,713 
B)$9,159 
C)$8,466 
D)$9,570

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