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

question 368

Multiple Choice

Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 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 facility expenses in the flexible budget for May would be closest to:

• A) $19,425
• B) $19,600
• C) $19,674
• D) $19,684

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Definitions:

Departmental Production Report

A detailed document that summarizes the production activities and outcomes of a specific department within a manufacturing company.

Equivalent Units

A concept in cost accounting used to express a quantity of partially completed goods in terms of fully completed units.

Physical Flow

The actual movement of goods or materials through a production process, from receipt of raw materials to the delivery of final products.

Work In Process

Items that are in the middle of the production process but not yet finished goods.