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

question 150

Multiple Choice

Paulis 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 February, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February:
The activity variance for net operating income in February would be closest to:

• A) $264 F
• B) $264 U
• C) $236 F
• D) $236 U

Understand how standard cost systems work in manufacturing settings.

Identify the budgeted versus actual performance differences.

Understand the role of machine-hours in costing and variances analysis.

Understand and apply the concept of standard costing in manufacturing operations.

---

Definitions:

American Winemakers

Individuals or companies in the United States that are engaged in the production of wine, contributing to the country's wine industry.

Government Functions

Activities and roles undertaken by government entities, including legislating, regulating, taxation, and providing public goods and services.

Special-Interest Effect

The impact or influence of special interest groups on policy-making processes, often aimed at obtaining favorable regulations or benefits for their members.

Economic Losses

The reduction in economic value due to factors such as poor investment decisions, natural disasters, or inadequate demand for goods and services.