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

question 236

Multiple Choice

Pearse 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 December, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Actual results for December: The net operating income in the planning budget for December would be closest to:

• A)$11,200
• B)$12,121
• C)$11,960
• D)$11,400

---

Definitions:

Bronchial Constriction

The narrowing of the bronchi in the lungs due to the tightening of surrounding smooth muscle, leading to difficulty breathing.

Pulmonary Emphysema

A long-term, progressive disease of the lungs that primarily causes shortness of breath due to over-inflation of the air sacs (alveoli) in the lungs.

Chronic Obstructive Pulmonary Disease

A group of lung conditions that cause breathing difficulties, including emphysema and chronic bronchitis.

Diving Reflex

A group of physiological mechanisms, such as decrease in metabolic rate, that are activated when a mammal dives to its limit.