Rippelmeyer 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 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
-The expendables in the flexible budget for June would be closest to:
A) $33,666
B) $34,270
C) $34,740
D) $34,621

Question

Rippelmeyer 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 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: 
-The expendables in the flexible budget for June would be closest to:
A) $33,666 
B) $34,270 
C) $34,740 
D) $34,621

Quizplus · Accepted Answer

The flexible budget adjusts for actual activity levels, and $34,270 is the closest estimate based on the given options.

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