Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January: Data used in budgeting: Fixed Element per Variable element per Month tenant-day Revenue $33.60 Wages and salaries Food and supplies Facility expenses $ 3,500 $ 7.40 500 10.50 9,500 4.70 Administrative expenses 6,600 0.30 Total expenses $20,100 $22.90 Actual results for January: Revenue $105,934 Wages and salaries Food and supplies $ 27,186 $ 32,485 $ 24,873 $ 7,557 Facility expenses Administrative expenses The net operating income in the flexible budget for January would be closest to:
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.
![The net operating income in the flexible budget for January would be closest to:
Multiple Choice
$13,878
$12,963
$13,788
$13,070](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fb347b1-80f2-4c6c-987c-ef0450d99d25%2F4b0d730d-1640-4788-957f-fba0ccbcd099%2Fydqcs4bw_processed.jpeg&w=3840&q=75)
![Tessmer 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 January, the kennel budgeted
for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its
actual results for January:
Data used in budgeting:
Fixed Element per Variable element per
Month
tenant-day
Revenue
$ 0
$ 3,500
$33.60
Wages and salaries
Food and supplies
Facility expenses
$ 7.40
500
10.50
9,500
4.70
Administrative expenses
6,600
0.30
Total expenses
$20,100
$22.90
Actual results for January:
Revenue
$105,934
$ 27,186
$ 32,485
$ 24,873
$ 7,557
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
The net operating income in the flexible budget for January would be closest to:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fb347b1-80f2-4c6c-987c-ef0450d99d25%2F4b0d730d-1640-4788-957f-fba0ccbcd099%2F2xfkq6k_processed.jpeg&w=3840&q=75)
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