Answer:
Pearse Kennel
1. Activity variance for net operating income in December would be:
= $200
2. The net operating income in the planning budget for December would be:
= $11,400
3. The net operating income in the flexible budget for December would be:
= $11,200
Explanation:
Data and Calculations:
Fixed Variable Planning Flexible Variance
per month per tenant-day Budget Budget
Revenue $32.10 $96,300 $95,658 $642
Wages & Salaries $2,400 $ 7.00 23,400 23,260 140
Food & Supplies $ 900 $11.30 34,800 34,574 226
Facility Expenses $8,600 $ 3.50 19,100 19,030 70
Admin Expenses $6,700 $ 0.30 7,600 7,594 6
Total Expenses $18,600 $22.10 $84,900 $84,458 $442
Net operating income $11,400 $11,200 $200
