Dinham 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 March, the kennel budgeted for 5500 tenant-days, but its actual level of activity was 5560 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element Variable element per tenant-day $ 36.00 per month Revenue Wages and salaries Food and supplies Facility expenses 2$ 2700 2$ 9.40 1900 15.90 8300 4.90 Administrative expenses 6800 0.30 Total expenses 19.700 $ 30.50 Actual results for March: Revenue $ 179,235 Wages and salaries Food and supplies Facility expenses Administrative expenses 28,740 2$ 89,785 $ 35,875 7114 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to: Select one: O A. $6841 F O B. $6841 U O C. $7171 U O D. $7171 F

Dinham 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 March, the kennel budgeted for 5500 tenant-days, but its actual level of activity was 5560 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: Fixed element Variable element per tenant-day $ 36.00 per month Revenue Wages and salaries Food and supplies Facility expenses 2$ 2700 2$ 9.40 1900 15.90 8300 4.90 Administrative expenses 6800 0.30 Total expenses 19.700 $ 30.50 Actual results for March: Revenue $ 179,235 Wages and salaries Food and supplies Facility expenses Administrative expenses 28,740 2$ 89,785 $ 35,875 7114 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for March would be closest to: Select one: O A. $6841 F O B. $6841 U O C. $7171 U O D. $7171 F

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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