Help Sa Paulis 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 4.600 tenant-days, but it actual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Fixed element per Variable element month $ 0 per tenant-day $ 31.10 $ 3,600 200 $ 7.10 11.90 4.10 0.50 8,600 8,400 $ 20,800 $ 23.60 $ 108,380 $ 23,560 $ 36,796 $ 19,310 $ 9,152 The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: Multiple Choice $6,012 F
Help Sa Paulis 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 4.600 tenant-days, but it actual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February Data used in budgeting: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Fixed element per Variable element month $ 0 per tenant-day $ 31.10 $ 3,600 200 $ 7.10 11.90 4.10 0.50 8,600 8,400 $ 20,800 $ 23.60 $ 108,380 $ 23,560 $ 36,796 $ 19,310 $ 9,152 The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: Multiple Choice $6,012 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Help Sa
Paulis 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 4.600 tenant-days, but it
actual level of activity was 4,580 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February
Data used in budgeting:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Total expenses
Actual results for February:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Fixed element per Variable element
month
$ 0
per tenant-day
$ 31.10
$ 3,600
200
$ 7.10
11.90
4.10
0.50
8,600
8,400
$ 20,800
$ 23.60
$ 108,380
$ 23,560
$ 36,796
$ 19,310
$ 9,152
The overall revenue and spending variance (ie., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be
closest to:
Multiple Choice
$6,012 F
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