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 wages and salaries in the planning budget for June would be closest to:
A)$17, 480
B)$17, 116
C)$17, 364
D)$17, 276

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 wages and salaries in the planning budget for June would be closest to:
A)$17, 480 
B)$17, 116 
C)$17, 364 
D)$17, 276

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $3, 200 + ($6.80 × 2, 100)= $17, 480

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