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

question 78

Multiple Choice

Ordway 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 June, the kennel budgeted for 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June: Data used in budgeting: Actual results for June: The facility expenses in the flexible budget for June would be closest to:

• A)$19,941
• B)$19,236
• C)$19,375
• D)$19,380

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Definitions:

Federal Reserve

The principal banking authority in the United States, responsible for overseeing the nation's financial and monetary systems.

Reserve Requirement

The reserve requirement is a central banking regulation that sets the minimum amount of reserves that must be held by a commercial bank, not to be loaned out, to ensure bank liquidity and stability.

Open Market Sale

The sale of government bonds by the central bank to reduce the money supply in the economy.

Money Supply

The complete sum of available financial resources in an economy, including cash, coins, and the funds available in checking and savings accounts, at a particular instant.