Gorley Kennel uses tenant-days as its measure of activity; an animal housed in t
ID: 2389021 • Letter: G
Question
Gorley 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 3,900 tenant-days, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for wages and salaries in February would be closest to:
a. $1,152 U b. $1,152 F c. $292 U d. $292 F
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Stent 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 3,000 tenant-days, but its actual level of activity was 2,950 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:
The wages and salaries in the planning budget for February would be closest to:
a. $22,670 b. $24,183 c. $23,780 d. $23,000
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The management of Granger Sports Equipment has been maintaining delivery performance data in order to improve the company's customer service. Data for the most recent month follows:
What is the Process Time?
a. 4 days b. 5 days c. 6 days d. 9 days
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Explanation / Answer
Gorley 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 3,900 tenant-days, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
The activity variance for wages and salaries in February would be closest to:
a. $1,152 U b. $1,152 F c. $292 U d. $292 F
the flexible budget is greater than the planning budget, the variance is unfavorable (U)
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