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

question 268

Multiple Choice

Gorley 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 February, the kennel budgeted for 3,900 tenant-days, but its actual level of activity was 3,940 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
-The activity variance for administrative expenses in February would be closest to:

• A) $18 U
• B) $12 U
• C) $18 F
• D) $12 F

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Definitions:

Income

The money received, usually from a job, business, or assets, over a certain period of time.

Income Distribution

The way in which total income is shared among the population or different segments of the economy.

Unequal

Lacking equality in size, quantity, or degree; not evenly distributed or balanced.

Lorenz Curve

The Lorenz Curve is a graphical representation of the distribution of income or wealth within a society, indicating the degree of inequality.