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

question 242

Multiple Choice

Arkin 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 May, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:
Actual results for May:
-The activity variance for wages and salaries in May would be closest to:

• A)$201 F
• B)$201 U
• C)$641 U
• D)$641 F

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Definitions:

Verson Stamping Machine

A specific brand or type of machine used in the metal forming process, capable of shaping or cutting metal with high precision through stamping.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, resulting in lower per-unit costs due to increased production volume.

Automobile Industry

The sector of the economy that manufactures and sells motor vehicles.

Inputs

Resources such as labor, materials, and capital that are used in the production process to produce goods and services.