Nakhle 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 October, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The administrative expenses in the planning budget for October would be closest to:
A)$7,484
B)$7,284
C)$7,585
D)$7,300

Question

Nakhle 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 October, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,960 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

Actual results for October:

-The administrative expenses in the planning budget for October would be closest to:

Data used in budgeting:
 Actual results for October: 
-The administrative expenses in the planning budget for October would be closest to:
A)$7,484 
B)$7,284 
C)$7,585 
D)$7,300

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $6,100 + $0.40 F1F1F1S1F1F1F10 3,000 = $7,300

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