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

question 288

Multiple Choice

Vanderhyde 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 3,300 tenant-days, but its actual level of activity was 3,340 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 administrative expenses in the planning budget for May would be closest to:

• A)$7,792
• B)$7,886
• C)$8,136
• D)$8,120

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Definitions:

Increase Liabilities

This occurs when a company incurs more debts or obligations, leading to an uptick in the claims against its assets.

Borrowed Money

Funds that have been obtained through loans that are expected to be repaid with interest.

Increase Liabilities

The action or process resulting in a rise in the total amount of obligations or debts owed by a business.

Purchased Supplies

Items bought for use in the operation of a business, not intended for resale.