Question 8Paulis 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 2,500 tenant-days, but its actual level of activity was 2,480 tenant-days. The kennel has provided the followingdata concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting:Fixed element per month Variable element per tenant-day$ 35,30Revenue$0$ 2,500$ 5.90Wages and salariesFood and supplies40013.80Facility expenses8,9003.40Administrative expenses 7,8000.40Total expenses$ 19,600$ 23.50Actual results for February:$ 85,654$ 16,992$ 33,084RevenueWages and salariesFood and supplies$ 16,682Facility expensesAdministrative expenses $ 8,732The 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 February would be closest to:O $264 UO $500 UO $500 FO $264 F

A spending variance is the difference between the actual amount of a particular expense and the…

Paulis 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 2.500 tenant-days, but its actual level of activity was 2.480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting Fixed element per month Variable element per tenant-day 5 35.30 Revenue So Wages and salaries Food and supplies $2.500 $5.90 400 13.80 Facility expenses Administrative expenses 7.800 Total expenses Actual results for February: 8,900 3.40 0.40 $ 19,600 $ 23.50 S 85.654 S 16.992 $ 33.084 S 16.682 Administrative expenses S 8.732 Revenue Wages and salaries Food and supplies Facility expenses The overall revenue and spending variance (ie, the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: O s264 U O ss00 U O 5500 F O $264 F

Paulis 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 2.500 tenant-days, but its actual level of activity was 2.480 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting Fixed element per month Variable element per tenant-day 5 35.30 Revenue So Wages and salaries Food and supplies $2.500 $5.90 400 13.80 Facility expenses Administrative expenses 7.800 Total expenses Actual results for February: 8,900 3.40 0.40 $ 19,600 $ 23.50 S 85.654 S 16.992 $ 33.084 S 16.682 Administrative expenses S 8.732 Revenue Wages and salaries Food and supplies Facility expenses The overall revenue and spending variance (ie, the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest to: O s264 U O ss00 U O 5500 F O $264 F

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.5.1C

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