Leaphart 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 May,the kennel budgeted for 2,800 tenant-days,but its actual level of activity was 2,840 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The administrative expenses in the planning budget for May would be closest to:

Question

Leaphart 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 May,the kennel budgeted for 2,800 tenant-days,but its actual level of activity was 2,840 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting:  The administrative expenses in the planning budget for May would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $6,200 + ($0.40 × 2,800)= $7,320

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