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

question 14

Multiple Choice

Rippelmeyer 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 3,600 tenant-days, but its actual level of activity was 3,550 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:
-The administrative expenses in the planning budget for June would be closest to:

• A) $7,996
• B) $7,885
• C) $7,555
• D) $7,560

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Definitions:

Retained Earnings

Net income retained in a corporation.

Total Assets

The sum of all owned resources and rights with economic value that a business controls, including both current and non-current assets.

Comparative Financial Statements

Financial statements that provide information for multiple accounting periods, typically side-by-side, allowing for analysis of trends, performance, and financial position over time.

Vertical Analysis

A financial analysis method in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.