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 2,660 tenant-days, but its actual level of activity was 2,640 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:     Fixed element per month Variable element per tenant-day Revenue   −   $ 38.30   Wages and salaries $ 3,455   $ 7.60   Food and supplies   1,650     14.60   Facility expenses   11,800     2.90   Administrative expenses   10,250     0.60   Total expenses $ 27,155   $ 25.70     The food and supplies in the flexible budget for June would be closest to: $39,867 $40,443 $40,486 $40,194

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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 2,660 tenant-days, but its actual level of activity was 2,640 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

 

  Fixed element per month Variable element per tenant-day
Revenue     $ 38.30  
Wages and salaries $ 3,455   $ 7.60  
Food and supplies   1,650     14.60  
Facility expenses   11,800     2.90  
Administrative expenses   10,250     0.60  
Total expenses $ 27,155   $ 25.70  
 


The food and supplies in the flexible budget for June would be closest to:

$39,867

$40,443

$40,486

$40,194

 
 
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