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

Question

Gandrud 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 June, the kennel budgeted for 2,600 tenant- days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: Variable element per tenant-day $37.10 $7.30 14.00 2.60 0.30 $24.20 Fixed element per month Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses $3,400 1,200 9,600 7,700 $21,900 The food and supplies in the flexible budget for June would be closest to: $37,569 O $37,600 $36,993 $37,320

Explanation / Answer

D. $37,320

Cost = Fixed cost + (Variable cost per unit × q)

= $1,200 + ($14.00 × 2,580)

= $37,320

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.