Drabant 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 February, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
-The administrative expenses in the planning budget for February would be closest to:
A) $7,500
B) $7,252
C) $7,110
D) $7,512

Question

Drabant 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 February, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: 
-The administrative expenses in the planning budget for February would be closest to:
A) $7,500 
B) $7,252 
C) $7,110 
D) $7,512

Quizplus · Accepted Answer

The planning budget for administrative expenses is typically a fixed amount, and $7,500 is the closest option that represents a rounded figure often used in budgeting.

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