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

question 48

Multiple Choice

Nakhle 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 3,000 tenant-days, but its actual level of activity was 2,960 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 administrative expenses in the planning budget for October would be closest to:

• A)$7,484
• B)$7,284
• C)$7,585
• D)$7,300

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Definitions:

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