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:
A)$6,639
B)$6,713
C)$6,970
D)$6,973

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:

-The administrative expenses in the planning budget for February would be closest to:
A)$6,639 
B)$6,713 
C)$6,970 
D)$6,973

Quizplus · Accepted Answer

The planning budget for administrative expenses is calculated based on expected costs and activities for February, and $6,970 is the closest estimate provided.

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