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 facility expenses in the flexible budget for July would be closest to:

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 facility expenses in the flexible budget for July would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $8,600 + ($4.90 × 3,260)= $24,574

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