Tolentino 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 November, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:
Actual results for November:
-The facility expenses in the flexible budget for November would be closest to:
A)$21,052
B)$20,922
C)$20,604
D)$20,960

Question

Tolentino 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 November, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,620 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

Actual results for November:

-The facility expenses in the flexible budget for November would be closest to:

Data used in budgeting:
 Actual results for November: 
-The facility expenses in the flexible budget for November would be closest to:
A)$21,052 
B)$20,922 
C)$20,604 
D)$20,960

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $9,000 + $4.60 F1F1F1S1F1F1F10 2,620 = $21,052

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