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

question 245

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:

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

A form of intelligence that involves the ability to use knowledge, experience, and skills that one has acquired over a lifetime.

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The state of having insufficient financial resources to meet basic living expenses like food, housing, and healthcare.

Toddler

A young child who has recently learned to walk, typically aged between one and three years old.