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

question 117

Multiple Choice

Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Actual results for January:
The net operating income in the flexible budget for January would be closest to:

• A) $13,878
• B) $13,788
• C) $12,963
• D) $13,070

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Definitions:

Paternalistic

A system or policy that governs people in a manner that is authoritarian but claims to be benevolent and in the best interest of the people being controlled.

Southern Economy

Refers to the economic structure and practices of the Southern United States, historically characterized by agriculture-based industries, such as cotton, and significant social and economic changes post-Civil War.

Industrial Settings

Environments or contexts related to or characteristic of industries and manufacturing, often involving the large-scale production of goods.

Sugar Plantation

Large agricultural estates where sugar cane is grown and processed, historically reliant on slave labor in the Americas and the Caribbean.