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

question 127

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 4,500 tenant-days, but its actual level of activity was 4,560 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 overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to:

• A) $2,414 F
• B) $2,864 F
• C) $2,414 U
• D) $2,864 U

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Definitions:

Painter

An artist who creates visual works primarily using paint as a medium on surfaces such as canvas, wood, walls, or paper.

Production Incentives

Rewards or benefits given to employees to motivate them to increase their output or efficiency in the production process.

Piecework

A payment method by which employees are paid a fixed rate for each unit produced or action performed, regardless of time.

Assembly-Line Workers

Employees who work on a manufacturing process where the product is moved from workstation to workstation, with each worker responsible for a specific task.