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 2,920 tenant-days, but its actual level of activity was 2,900 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting Fixed element per month Varlable element per tenant-day Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses -43.50 $3,775 $8.90 17.20 4.20 1.90 $ 25,920 32.20 1,325 11,100 9,720 The food and supplies in the flexible budget for June would be closest to O $50,878 O $51,454 O $51,549 O $51.205

Explanation / Answer

Food and supplies in flexible budget = 1325+(2900*17.2)= 51205 Option 4 is correct

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