part 2 Hubbard Kennel uses tenant-days as its measure of activity an animal hous

Question

part 2

Hubbard 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 2,100 tenant-days, but its actual level of activity was 2,060 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January Fixed variable Element element per per Month tenant-day Revenue $31.10 Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $ 2,300 7.20 8.10 2.70 0.30 $19,800 18.30 1,000 9,500 7,000 Actual results for January: Revenue wages and salaries Food and supplies Facility expenses Administrative expenses7,408 $63,606 $17,282 $18,346 $14,432 The facility expenses in the flexible budget for January would be closest to: Multiple Choice $14,157 $14,712 $15,170 $15,062

Explanation / Answer

1) Facility expense in flexible budget = (2060*2.7+9500) = 15062

so answer is d) 15062

2) Selling and administrative expense in planning budget = (5800*.80+26200) = 30840

so answer is a) 30840

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