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

question 163

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 activity variance for net operating income in December would be closest to:

• A)$640 F
• B)$640 U
• C)$200 U
• D)$200 F

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Definitions:

High-involvement

A management approach where employees are given more responsibility and input in decision-making processes, enhancing their engagement and motivation.

Human Relations

The study and management of how people interact within groups, focusing on areas such as communication, motivation, and leadership to improve job performance and work environment.

Classical

Pertaining to the first significant period of an area of study, often reflecting foundational theories or principles, such as in classical economics or classical physics.

Managerial Strategy

A set of choices and actions that managers formulate and implement to achieve organizational goals and objectives.