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:

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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
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