Goodfriend 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 2,800 tenant-days, but its actual level of activity was 2,840 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 wages and salaries in the planning budget for June would be closest to:
A)$22,214
B)$21,901
C)$22,180
D)$22,464

Question

Goodfriend 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 2,800 tenant-days, but its actual level of activity was 2,840 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 wages and salaries in the planning budget for June would be closest to:

Data used in budgeting: Actual results for June: 
-The wages and salaries in the planning budget for June would be closest to:
A)$22,214 
B)$21,901 
C)$22,180 
D)$22,464

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $2,300 + $7.10 F1F1F1S1F1F1F10 2,800 = $22,180

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