Vanderhyde 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 May, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 340 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May: The wages and salaries in the planning budget for May would be closest to:
A)$28, 473
B)$27, 260
C)$28, 818
D)$27, 548

Question

Vanderhyde 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 May, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 340 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:  Actual results for May:  The wages and salaries in the planning budget for May would be closest to:
A)$28, 473 
B)$27, 260 
C)$28, 818 
D)$27, 548

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $3, 500 + ($7.20 × 3, 300)= $27, 260

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