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

question 227

Multiple Choice

Bernes 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 October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The activity variance for administrative expenses in October would be closest to:

• A) $2 F
• B) $162 F
• C) $162 U
• D) $2 U

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Definitions:

Needs Analysis

The process of determining and addressing the needs or gaps between current conditions and desired conditions or wants in organizational settings.

Organizational Analysis

An examination of an organization's structure, processes, and systems to identify strengths and areas for improvement.

Departmental Analysis

An evaluation process aimed at understanding the functions, performance, and needs of different business units within an organization.

Per-Employee Expenditures

The amount of money spent by an organization for each employee, which can cover salaries, benefits, training costs, and other related expenses.