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Goodfriend 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 June, the kennel budgeted for 2,800 tenant-days, but its actual level of activity was 2,840 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
Data used in budgeting: Actual results for June:
-The activity variance for wages and salaries in June would be closest to:
Overhead Allocated
The portion of overhead costs assigned to a specific product, department, or project.
Work in Process Account
An account that tracks the costs associated with unfinished goods that are still in the production process.
Materials Purchased
Refers to the raw materials bought by a company for use in the production process.
Weighted-Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.
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