Help Save & Exit Kennel uses tenant-days as its measure of activity, an animal h

Question

Help Save & Exit 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 December the kennel budgeted for 2.500 tenant-days, but its actual level of activity was 2.530tenant-days. The the formulas to be used in its budgeting: kennel has provided the following data concerning Fixed Variable Element element per per Month tenant-day 24 Revenue $33.00 Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses 3,800 7.90 1,000 11.60 2.20 0.20 $19,600 $21.90 8,600 6,200 The administrative expenses in the planning budget for December would be closest to: Multiple Choice $6.893 $6,700

Explanation / Answer

Administrative expense in planning budget budgeted activity*.20 +6200 2,500*.2+6200 6700 answer

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