Wales 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 February,the kennel budgeted for 2,700 tenant-days,but its actual level of activity was 2,730 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 February would be closest to:

Question

Wales 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 February,the kennel budgeted for 2,700 tenant-days,but its actual level of activity was 2,730 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 February would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $6,700 + ($0.10 × 2,700)= $6,970

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