Hubbard 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 January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
Actual results for January:
The wages and salaries in the planning budget for January would be closest to:
A) $17,282
B) $17,618
C) $17,420
D) $17,132

Question

Hubbard 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 January, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting:
 Actual results for January:
 The wages and salaries in the planning budget for January would be closest to:
A) $17,282 
B) $17,618 
C) $17,420 
D) $17,132

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $2,300 + ($7.20 × 2,100) = $17,420

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