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 wages and salaries in the planning budget for October would be closest to:
A)$22,920
B)$22,644
C)$22,614
D)$22,900

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 wages and salaries in the planning budget for October would be closest to:

Data used in budgeting:
 Actual results for October: 
-The wages and salaries in the planning budget for October would be closest to:
A)$22,920 
B)$22,644 
C)$22,614 
D)$22,900

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $3,700 + $6.40 F1F1F1S1F1F1F10 3,000 = $22,900

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