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PSYCHO15rus [73]
2 years ago
6

Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed Element per Month Variable element per tenant-day Revenue $ 0 $ 33.90 Wages and salaries $ 2,200 $ 7.70 Food and supplies 1,400 12.90 Facility expenses 8,200 4.40 Administrative expenses 6,200 0.40 Total expenses $ 18,000 $ 25.40 Actual results for December: Revenue $ 122,235 Wages and salaries $ 30,575 Food and supplies $ 47,455 Facility expenses $ 24,360 Administrative expenses $ 7,460 The wages and salaries in the planning budget for December would be closest to:
Business
1 answer:
REY [17]2 years ago
6 0

Facility expenses in the flexible budget comes out to be $24,260.

<h3>What is flexible budged?</h3>

A flexible budget is one that is based on various sales volumes. For each projected level of production, the static budget is adjusted by a flexible budget. Due to this flexibility, management is able to predict how the budgeted figures will change as sales volume changes.

Calculation for the facility expenses in the flexible budget for December:

The table of the data used in budgeting: Fixed Element per Month Variable element per tenant-day Revenue is in attachment-

Facility expenses in the flexible budget = Variable + Fixed

                                                                  = (3650*4.40) + 8200

                                                                  = 16,060 + 8200

                                                                   = 24,260

The wages and salaries in the planning budget for December would be closest to $24,260.

To know more about the flexible budget, here

brainly.com/question/25353134

#SPJ4

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