Virgen Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 281

Multiple Choice

Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting:
Actual results for May:
The administrative expenses in the planning budget for May would be closest to:

• A) $8,409
• B) $8,386
• C) $8,280
• D) $8,276

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