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

question 237

Multiple Choice

Gordin 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 May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May:

-The administrative expenses in the planning budget for May would be closest to:

• A) $6,300
• B) $6,302
• C) $6,121
• D) $6,162

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Definitions:

Debit To Cash

An accounting entry that increases the cash balance in the company's ledger.

Collections From Customers

The process of receiving payments from customers for goods or services provided or sold.

Control Accounts

General ledger accounts that summarize and control the total of individual accounts found in subsidiary ledgers.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, containing all the financial accounts and transaction data.