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

question 95

Multiple Choice

Hubbard 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 2,100 tenant-days, but its actual level of activity was 2,060 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:
Please keep the heads "Data usd in budgeting:" This makes it absolutely clear that the table immediately below the head is for budgeting and the table that follows are actual results.
Actual results for January:

-The net operating income in the flexible budget for January would be closest to:

• A) $6,568
• B) $6,021
• C) $6,257
• D) $7,080

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Definitions:

Vacating Employees

Refers to the process of employees leaving their current positions, either voluntarily or involuntarily.

Due Diligence

A comprehensive appraisal undertaken by a prospective buyer, especially of a business, to establish its assets and liabilities and evaluate its commercial potential.

Potential Acquirer

An individual or organization with the capability and interest to purchase or take over another company.

Compensation System

A structured plan designed to provide employees with various forms of reward in return for their labor, including salary, wages, bonuses, and benefits.