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

question 20

Multiple Choice

Nicolini 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 October, the kennel budgeted for 2, 200 tenant-days, but its actual level of activity was 2, 250 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Actual results for October: The spending variance for food and supplies in October would be closest to:

• A)$600 F
• B)$5 F
• C)$600 U
• D)$5 U

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Definitions:

Process Map

A visual representation of the steps, events, and operations that comprise a business process, showing how items flow through various stages.

Schematic Diagram

illustrates the elements of a system using abstract, graphic symbols rather than realistic pictures, emphasizing connections and relationships.

Crossover Point

The crossover point is the level at which two different options or strategies result in the same outcome or cost, often used in decision-making processes.

Fixed Costs

Fixed charges that are unaffected by changes in production or sales volumes, including rental fees, wages, and insurance costs.