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

question 42

Multiple Choice

Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November: Data used in budgeting:
Actual results for November:
The activity variance for wages and salaries in November would be closest to:

• A) $454 F
• B) $454 U
• C) $54 F
• D) $54 U

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Definitions:

Deviations

Differences between observed values and some reference value, often the mean of the set.

Conservative Estimates

Estimates made cautiously to ensure that the actual value is not likely to exceed the estimated value.

Sample Statistics

Statistics calculated from a sample and used to estimate parameters of the total population.

Exclusive Range

A range of values that does not include the upper and lower bounds specified.