Tolentino Kennel uses tenant-days as its measure of activity; an animal housed i

Question

Tolentino 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 November, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:

Data used in budgeting:

5,800    

0.30    

$16,300    

$20.30    

Actual results for November:

$14,094

$13,730

$30,030

$30,394

Data used in budgeting:

Explanation / Answer

$14,094 Statement showing flexible budget for 3340 Tenant days Particulars Amount Revenue(29.40*3340)          98,196.00 Variable Expenses: Wages &Sal (6.30*3340)          21,042.00 Expandables(10.6*3340)          35,404.00 Facility Exp(3.1*3340)          10,354.00 Admin Exp(.30*3340)            1,002.00 Total Variable Expenses          67,802.00 Contribution(Revenue-VC)          30,394.00 Fixed Costs: Wages &Sal            2,100.00 Expandables                800.00 Facility Exp            7,600.00 Admin Exp            5,800.00 Total Fixed Costs          16,300.00 Net Operating Income          14,094.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.