Gandrud 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 June, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the flexible budget for June would be closest to:
A)$11,640
B)$14,332
C)$11,382
D)$14,113

Question

Gandrud 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 June, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the flexible budget for June would be closest to:

-The net operating income in the flexible budget for June would be closest to:
A)$11,640 
B)$14,332 
C)$11,382 
D)$14,113

Quizplus · Accepted Answer

The net operating income in the flexible budget is calculated based on the actual level of activity, adjusting the budgeted figures accordingly. The closest figure provided is $11,382.

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