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

question 307

Multiple Choice

Wales 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 2,700 tenant-days, but its actual level of activity was 2,730 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The food and supplies in the flexible budget for February would be closest to:

• A)$31,017
• B)$30,339
• C)$31,476
• D)$31,140

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Definitions:

Common Law Fraud

A form of fraud based on case law where a false representation of a material fact is made with intent to deceive and resulting in damage to the victim.

Reckless Ignorance

A state of disregarding or showing indifferent concern towards the consequences of one’s actions, often leading to harm or risks.

Embezzled Funds

Money that is dishonestly taken from an employer or organization by someone in a position of trust, typically for personal use.

Unqualified Opinion

An auditor's report that the financial statements of an entity present fairly its affairs in all material respects according to the applicable financial reporting framework.