Gandrud 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 2,600 tenant-days,but its actual level of activity was 2,580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The facility expenses in the flexible budget for June would be closest to:

Question

Gandrud 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 2,600 tenant-days,but its actual level of activity was 2,580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting:  The facility expenses in the flexible budget for June would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $9,600 + ($2.60 × 2,580)= $16,308

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