Nicolini 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 October, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 250 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The food and supplies in the flexible budget for October would be closest to:
A)$27, 775
B)$26, 571
C)$27, 793
D)$27, 180

Question

Nicolini 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 October, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 250 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting:  Actual results for October:  The food and supplies in the flexible budget for October would be closest to:
A)$27, 775 
B)$26, 571 
C)$27, 793 
D)$27, 180

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $1, 000 + ($11.90 × 2, 250)= $27, 775

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