Whetstine 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 September, the kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
-The facility expenses in the flexible budget for September would be closest to:
A) $21,320
B) $21,238
C) $21,513
D) $21,784

Question

Whetstine 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 September, the kennel budgeted for 3,200 tenant-days, but its actual level of activity was 3,180 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: 
-The facility expenses in the flexible budget for September would be closest to:
A) $21,320 
B) $21,238 
C) $21,513 
D) $21,784

Quizplus · Accepted Answer

The formula for facility expenses in the flexible budget is $6,800 + ($4.80 × tenant-days). Plugging in the actual tenant-days: $6,800 + ($4.80 × 3,180) = $21,238, which is closest to option B.

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