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

question 119

Multiple Choice

Gandrud 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, 600 tenant-days, but its actual level of activity was 2, 580 tenant-days.The kennel has provided the following data concerning the formulas to be used in its budgeting: The food and supplies in the flexible budget for June would be closest to:

• A)$36, 993
• B)$37, 569
• C)$37, 600
• D)$37, 320

---

Definitions:

Average Collection Period

The mean duration required by a business to receive payments due from its clients.

Accounts Payable Period

The average time it takes for a business to pay off its suppliers after receiving goods or services, reflecting on the company's cash management efficiency.

Average Collection Period

The typical time frame for a company to receive dues from its clients for goods or services offered on credit.