Juenemann 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 December, the kennel budgeted for 3, 800 tenant-days, but its actual level of activity was 3, 770 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The facility expenses in the flexible budget for December would be closest to:
A)$24, 080
B)$22, 858
C)$23, 223
D)$24, 200

Question

Juenemann 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 December, the kennel budgeted for 3, 800 tenant-days, but its actual level of activity was 3, 770 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting:  Actual results for December:  The facility expenses in the flexible budget for December would be closest to:
A)$24, 080 
B)$22, 858 
C)$23, 223 
D)$24, 200

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $9, 000 + ($4 × 3, 770)= $24, 080

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