Gandrud 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, 600 tenant-days, but its actual level of activity was 2, 580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The food and supplies in the flexible budget for June would be closest to:
A)$36, 993
B)$37, 569
C)$37, 600
D)$37, 320

Question

Gandrud 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, 600 tenant-days, but its actual level of activity was 2, 580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting:  The food and supplies in the flexible budget for June would be closest to:
A)$36, 993 
B)$37, 569 
C)$37, 600 
D)$37, 320

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 200 + ($14 × 2, 580)= $37, 320

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