Marsee 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 2,500 tenant-days, but its actual level of activity was 2,510 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 administrative expenses in the planning budget for June would be closest to:
A)$7,881
B)$7,850
C)$8,151
D)$8,150

Question

Marsee 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 2,500 tenant-days, but its actual level of activity was 2,510 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 administrative expenses in the planning budget for June would be closest to:

Data used in budgeting:
 Actual results for June: 
-The administrative expenses in the planning budget for June would be closest to:
A)$7,881 
B)$7,850 
C)$8,151 
D)$8,150

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $7,900 + $0.10 F1F1F1S1F1F1F10 2,500 = $8,150

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