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

question 104

Multiple Choice

Smithj 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 February, the kennel budgeted for 3, 500 tenant-days, but its actual level of activity was 3, 490 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The overall revenue and spending variance (i.e. , the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to:

• A)$1, 055 U
• B)$970 U
• C)$970 F
• D)$1, 055 F

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Definitions:

Thorndike's Law

A principle stating that behaviors followed by positive outcomes are more likely to be repeated, whereas behaviors followed by negative outcomes are less likely to be repeated.

Ames Room

An optical illusion room designed to manipulate perceived size and perspective, where objects appear larger or smaller than they really are.

Proximal Stimulus

The physical energy from an object that directly interacts with sensory receptors, leading to perception.

Distal Stimulus

An object or event in the external world that provides information to the sensory organs.