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:

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

The wages and salaries in the planning budget for March would be closest to $18,860 because the total wages and salaries for the year are $226,320, and March is the third month of the year. So, the wages and salaries for March would be 1/12 of $226,320, which is $18,860.

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