Maliszewski 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 March, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,410 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
-The expendables in the flexible budget for March would be closest to:
A)$32,800
B)$31,598
C)$32,895
D)$31,413

Question

Maliszewski 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 March, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,410 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: 
-The expendables in the flexible budget for March would be closest to:
A)$32,800 
B)$31,598 
C)$32,895 
D)$31,413

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $500 + $9.50 F1F1F1S1F1F1F10 3,410 = $32,895

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