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 4,500 tenant-days, but its actual level of activity was 4,560 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 Actual results for March Multiple Choice O Revenue Wages and salaries $ 142,130 $28,648 $ 71,025 Food and supplies Facility expenses $ 26,125 $ 7,104 Administrative expenses The spending variance for food and supplies in March would be closest to: $1,575 U The spending variance for food and supplies in March would be closest to: $1,575 F Fixed element per month $681 F $0 $ 3,400 2,400 8,900 7,400 $ 22,100 $681 U Variable element per tenant-day $ 35.00 $ 8.40 14.90 3.90 0.30 $ 27.50
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 4,500 tenant-days, but its actual level of activity was 4,560 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 Actual results for March Multiple Choice O Revenue Wages and salaries $ 142,130 $28,648 $ 71,025 Food and supplies Facility expenses $ 26,125 $ 7,104 Administrative expenses The spending variance for food and supplies in March would be closest to: $1,575 U The spending variance for food and supplies in March would be closest to: $1,575 F Fixed element per month $681 F $0 $ 3,400 2,400 8,900 7,400 $ 22,100 $681 U Variable element per tenant-day $ 35.00 $ 8.40 14.90 3.90 0.30 $ 27.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 4,500 tenant-days, but its actual level of activity was 4,560 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
Actual results for March:
Multiple Choice
O
Revenue
$ 142,130
Wages and salaries
$ 28,640
Food and supplies
$ 71,025
Facility expenses
$ 26,125
Administrative expenses
$ 7,104
The spending variance for food and supplies in March would be closest to:
$1,575 U
The spending variance for food and supplies in March would be closest to:
$1,575 F
Fixed element
per month
$681 F
$0
$ 3,400
2,400
$681 U
8,900
7,400
$ 22,100
Variable
element per
tenant-day
$35.00
$ 8.40
14.90
3.90
0.30
$ 27.50
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