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

question 193

Multiple Choice

Juenemann 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 December, the kennel budgeted for 3,800 tenant-days, but its actual level of activity was 3,770 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

-The activity variance for administrative expenses in December would be closest to:

• A)$291 U
• B)$291 F
• C)$9 F
• D)$9 U

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Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific product, department, or segment of a company, making it easier to allocate expenses accurately.

Common Fixed Expenses

Expenses shared across different departments or product lines within a company that do not change with production or sales volume.

Sales Dollars

A measurement of revenue generated from sales activities, expressed in the currency of dollars.

Special Order

A one-time or unusual order for goods or services, often requiring unique production or procurement efforts.