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

question 213

Multiple Choice

Ordway 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 2,100 tenant-days, but its actual level of activity was 2,070 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 facility expenses in the flexible budget for June would be closest to:

• A)$19,941
• B)$19,236
• C)$19,375
• D)$19,380

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance between two variables, often used as a default hypothesis in testing.

Standard Deviation

A measure of the dispersion or spread of a set of values, indicating how much the values deviate from the mean of the data.

Test Statistic

A value calculated from sample data during a hypothesis test used to decide whether to reject the null hypothesis.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly the mean.