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

question 141

Multiple Choice

Leaphart 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 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the planning budget for May would be closest to:

• A)$10,920
• B)$10,437
• C)$11,356
• D)$10,737

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