Zenon 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 July, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The food and supplies in the flexible budget for July would be closest to:
A)$27,732
B)$27,597
C)$28,060
D)$26,932

Question

Zenon 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 July, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,260 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

Actual results for July:

-The food and supplies in the flexible budget for July would be closest to:

Data used in budgeting:

Actual results for July:

-The food and supplies in the flexible budget for July would be closest to:
A)$27,732 
B)$27,597 
C)$28,060 
D)$26,932

Quizplus · Accepted Answer

The flexible budget for July would be closest to $27,732 because the actual sales were $138,660, which is 92% of the budgeted sales of $150,000. Therefore, the food and supplies would be 92% of the budgeted amount of $30,140, which is $27,732.

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