Pearse 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The net operating income in the flexible budget for December would be closest to:
A)$11,200
B)$11,400
C)$11,960
D)$12,121

Question

Pearse 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:  Actual results for December:  The net operating income in the flexible budget for December would be closest to:
A)$11,200 
B)$11,400 
C)$11,960 
D)$12,121

Quizplus · Accepted Answer

The Answer of Pearse 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:  Actual results for December:  The net operating income in the flexible budget for December would be closest to:
A)$11,200 
B)$11,400 
C)$11,960 
D)$12,121

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