Zenon 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 July, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 260 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The food and supplies in the flexible budget for July would be closest to:
A)$27, 732
B)$27, 597
C)$28, 060
D)$26, 932

Question

Zenon 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 July, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 260 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting:  Actual results for July:  The food and supplies in the flexible budget for July would be closest to:
A)$27, 732 
B)$27, 597 
C)$28, 060 
D)$26, 932

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 000 + ($8.20 × 3, 260)= $27, 732

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