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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed Element per Month $ 0 Variable element per tenant-day $ 33.60 $ 3,500 500 9,500 $ 7.40 10.50 4.70 6,600 0.30 $ 20,100 $ 22.90 Actual results for January. $ Revenue 105,934 $ Wages and salaries 27,186 $ Food and supplies 32,485 $ Facility expenses 24,873 $ 7,557 Administrative expenses The facility expenses 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: Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Fixed Element per Month $ 0 Variable element per tenant-day $ 33.60 $ 3,500 500 9,500 $ 7.40 10.50 4.70 6,600 0.30 $ 20,100 $ 22.90 Actual results for January. $ Revenue 105,934 $ Wages and salaries 27,186 $ Food and supplies 32,485 $ Facility expenses 24,873 $ 7,557 Administrative expenses The facility expenses in the flexible budget for January would be closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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:
Revenue
Wages and salaries
Food and supplies
Facility expenses
Administrative expenses
Total expenses
Fixed Element
per Month
$ 0
Variable element
per tenant-day
$ 33.60
$ 3,500
500
9,500
$ 7.40
10.50
4.70
6,600
0.30
$ 20,100
$ 22.90
Actual results for January.
$
Revenue
105,934
$
Wages and salaries
27,186
$
Food and supplies
32,485
$
Facility expenses
24,873
$ 7,557
Administrative expenses
The facility expenses in the flexible budget for January would be closest to:
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