Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
Actual results for November:

-The food and supplies in the flexible budget for November would be closest to:
A) $35,180
B) $35,078
C) $35,944
D) $35,733

Question

Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:
Data used in budgeting:
  Actual results for November:
 
-The food and supplies in the flexible budget for November would be closest to:
A) $35,180 
B) $35,078 
C) $35,944 
D) $35,733

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $500 + ($10.20 × 3,390) = $35,078

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