Business, 15.04.2020 19:55 amandarenee4296
Roye 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 September, Kennel budgeted for 5,200 tenant-days, but its actual level of activity was 5,230 tenant-days. Kennel has provided the following data concerning the formulas used in its budgeting and its actual results for September:
Data used in budgeting:
Fixed element per month
Variable element per tenant-day
Revenue -- $35.70
Wages and salaries $2,400 $9.10
Food and supplies 1,600 15.60
Facility expenses 8,000 4.60
Administrative expenses 6,500 0.40
Total expenses $18,500 $29.70
Actual results for September:
Revenue $171,323
Wages and salaries $28,710
Food and supplies $82,980
Facility expenses $32,258
Administrative expenses $7,111
The overall revenue and spending variance (i. e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for September would be closest to:
O $7,564 U
O $7,384 U
O $7,564 F
O $7,384 F
Answers: 2
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Roye Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day...
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