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

question 392

Multiple Choice

Vanderhyde 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 3,300 tenant-days, but its actual level of activity was 3,340 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)$7,792
• B)$7,886
• C)$8,136
• D)$8,120

---

Definitions:

Predetermined Benchmark

A pre-established standard or point of reference against which performance is measured.

Investment Profits

The earnings gained from the allocation of resources, such as money, into a financial asset with the expectation of a favorable return.

Management Compensation

The payment or remuneration given to executives and managers within a company, including salaries, bonuses, and other performance-related benefits.

Stated Benchmark

A specific standard or point of reference against which the performance of a security, mutual fund, or investment manager can be measured.