Pong 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 December, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 1,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:
Actual results for December:
-The facility expenses in the flexible budget for December would be closest to:
A)$14,640
B)$14,187
C)$14,475
D)$14,700

Question

Pong 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 December, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 1,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

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

Data used in budgeting:
 Actual results for December: 
-The facility expenses in the flexible budget for December would be closest to:
A)$14,640 
B)$14,187 
C)$14,475 
D)$14,700

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $8,700 + $3 F1F1F1S1F1F1F10 1,980 = $14,640

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