Marsee 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 2,500 tenant-days, but its actual level of activity was 2,510 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:
Actual results for June:
-The facility expenses in the flexible budget for June would be closest to:
A)$17,933
B)$17,791
C)$17,732
D)$17,700

Question

Marsee 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 2,500 tenant-days, but its actual level of activity was 2,510 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

Actual results for June:

-The facility expenses in the flexible budget for June would be closest to:

Data used in budgeting:
 Actual results for June: 
-The facility expenses in the flexible budget for June would be closest to:
A)$17,933 
B)$17,791 
C)$17,732 
D)$17,700

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $9,700 + $3.20 F1F1F1S1F1F1F10 2,510 = $17,732

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