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

question 305

Multiple Choice

Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April: Data used in budgeting:
Actual results for April:
The activity variance for wages and salaries in April would be closest to:

• A) $128 U
• B) $342 F
• C) $128 F
• D) $342 U

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Definitions:

Notes Payable

Debt instruments or formal written agreements to pay a specified sum of money at a future date.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity.

Prepaid Property Tax

An expense paid in advance for property taxes, recognized as an asset until the period the tax covers.

Property Tax Payable

A liability account on the balance sheet representing the amount of property taxes a company owes but has not yet paid to the taxing authorities.