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

question 87

Multiple Choice

Kawamura 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 December, the kennel budgeted for 2,300 tenant-days, but its actual level of activity was 2,320 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for December would be closest to:

• A) $10,156
• B) $9,890
• C) $7,309
• D) $7,184

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