Question

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: Data used in budgeting: Fixed Element per Month Variable element per tenant-day Revenue - $ 31.10 Wages and salaries $ 2,300 $ 7.20 Food and supplies 1,000 8.10 Facility expenses 9,500 2.70 Administrative expenses 7,000 0.30 Total expenses $ 19,800 $ 18.30 Actual results for January: Revenue $ 63,606 Wages and salaries $ 17,282 Food and supplies $ 18,346 Facility expenses $ 14,432 Administrative expenses $ 7,408 The wages and salaries in the planning budget for January would be closest to:
Multiple Choice
A. $17,282
B. $17,618
C. $17,420
D. $17,132

Answer 1

Answer:

Instructios are listed below.

Explanation:

Giving the following information:

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.

Wages and salaries:

Fixed= $ 2,300

Variable=  $ 7.20

Estimated Wages and Salaries= 2,300 + 7.2*2,100= $17,420