Gandrud Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for...

 

Transcribed Image Text:

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 2,580 tenant-days, but its actual level of activity was 2,600 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Multiple Choice The net operating income in the flexible budget for June would be closest to $14,113 $11,640 $11,382 Fixed element per month Variable element per tenant-day $37.10 $7.30 14.00 2.60 0.30 $24.20 $14,332 $3,400 1,200 9,600 7,700 $21,900 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 2,580 tenant-days, but its actual level of activity was 2,600 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Multiple Choice The net operating income in the flexible budget for June would be closest to $14,113 $11,640 $11,382 Fixed element per month Variable element per tenant-day $37.10 $7.30 14.00 2.60 0.30 $24.20 $14,332 $3,400 1,200 9,600 7,700 $21,900

Answer rating: 100% (QA)

Correct answer C 11382 Income Statement No of Units Produced 2580 3710 Pe... View the full answer