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 food and supplies in the flexible budget for March would be closest to:
A)$18, 612
B)$18, 745
C)$19, 446
D)$18, 940

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 food and supplies in the flexible budget for March would be closest to:
A)$18, 612 
B)$18, 745 
C)$19, 446 
D)$18, 940

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $900 + ($8.20 × 2, 160)= $18, 612

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