Dinham 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 5,400 tenant-days, but its actual level of activity was 5,450 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed element per month Actual results for March: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 2,600 1,800 8,200 6,700 $ 19,300 $ 172,325 $ 28,730 87,530 34,975 7,113 $ $ Variable element per tenant-day $ $ 35.90 S 9.30 15.80 4.80 0.60 $ 30.50 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to:
Dinham 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 5,400 tenant-days, but its actual level of activity was 5,450 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed element per month Actual results for March: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 2,600 1,800 8,200 6,700 $ 19,300 $ 172,325 $ 28,730 87,530 34,975 7,113 $ $ Variable element per tenant-day $ $ 35.90 S 9.30 15.80 4.80 0.60 $ 30.50 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Dinham 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 5,400 tenant-days, but its actual level of activity was 5,450 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:
Revenue
Wages and
salaries
Food and supplies
Facility expenses
Administrative
expenses
Total expenses
Fixed element
per month
Actual results for March:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
$
2,600
1,800
8,200
6,700
$ 19,300
Variable element
per tenant-day
$ 172,325
$ 28,730
$ 87,530
$
34,975
$
7,113
$ 35.90
S
9.30
15.80
4.80
0.60
$ 30.50
The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending
variance column on the flexible budget performance report) for March would be closest to:
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