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

question 301

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 wages and salaries in the planning budget for June would be closest to:

• A)$17, 480
• B)$17, 116
• C)$17, 364
• D)$17, 276

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Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Indirect Method

A cash flow statement presentation technique where net income is adjusted for changes in balance sheet accounts to calculate operating cash flow.

Indirect Method

A technique used in cash flow statement preparation where net income is adjusted for non-cash transactions to calculate operating cash flows.

Cash Dividends

Payments made by a corporation to its shareholder members from earnings, typically in the form of cash.