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

question 148

Multiple Choice

Rhed 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 December, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,650 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:Data used in budgeting: Actual results for December:
The activity variance for administrative expenses in December would be closest to:

• A) $20 U
• B) $220 U
• C) $20 F
• D) $220 F

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Definitions:

Chi-square Statistic

A measure used in statistics to analyze the independence of two categorical variables and assess how likely it is that any observed difference between sets occurred by chance.

Chi-square Statistic

A statistical measure used to evaluate the differences between observed and expected frequencies in one or more categories of a contingency table.

Expected Frequencies

The predicted counts of occurrences across different categories that one would expect if a hypothesis were true.