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

question 294

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 spending variance for food and supplies in April would be closest to:

• A) $2,010 U
• B) $2,298 F
• C) $2,010 F
• D) $2,298 U

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Definitions:

Gross Method

An accounting practice where purchases are recorded at their gross price, without deducting any discounts, which are recorded if and when they are received.

Exchange Rates

The rate at which one currency can be exchanged for another currency, influencing international trade and finance.

Settlement Date

The date on which a trade or transaction must be finalized, with the buyer delivering payment and the seller transferring ownership of the asset.

Interest Paid

The amount of money paid by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage rate.