Perla 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 March, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 160 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Actual results for March: The wages and salaries in the planning budget for March would be closest to:
A)$18, 860
B)$18, 749
C)$18, 568
D)$18, 408

Question

Perla 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 March, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 160 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting:  Actual results for March:  The wages and salaries in the planning budget for March would be closest to:
A)$18, 860 
B)$18, 749 
C)$18, 568 
D)$18, 408

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $2, 800 + ($7.30 × 2, 200)= $18, 860

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