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

question 286

Multiple Choice

Dinham 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 March, the kennel budgeted for 5,100 tenant-days, but its actual level of activity was 5,140 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:Data used in budgeting: Actual results for March:
The revenue variance for March would be closest to:

• A) $11,035 U
• B) $12,459 U
• C) $12,459 F
• D) $11,035 F

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of dispersion or variation in a set of values.

Test Statistic

A calculated value from sample data used to make decisions about the validity of a hypothesis in hypothesis testing.

Advertising Campaigns

Organized series of promotional activities around a particular theme aimed at stimulating demand for a product or service.

Null Hypothesis

The hypothesis that there is no significant difference between specified populations, any observed difference being due to sampling or experimental error.