Leaphart Kennel uses tenant-days as its measure of activity; an animal housed in

Question

Leaphart 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 May, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

FIXED ELEMENT PER MONTH:

Revenue…..-

Wages and salaries……..$3,600

Food and supplies………$700

Facility expenses………$9,100

Admin expenses……..$6,200

Total expenses…….$19,600

VARIABLE ELEMENT PER TENANT DAY:

Revenue…..$31.10

Wages and salaries……..$5.40

Food and supplies………$12.40

Facility expenses………$2.00

Admin expenses……..$0.40

Total expenses…….$20.20

The wages and salaries in the planning budget for May would be closest to:

$18,344

$18,606

$18,720

$18,936

Please show all work

$18,344

$18,606

$18,720

$18,936

Please show all work

Explanation / Answer

$18,720

The wages and salaries in the planning budget for May=5.40*2,800+3,600=$18,720.

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