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(Solution Document) Nicolini Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day.


Nicolini 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 October, the kennel budgeted for 2,330 tenant-days, but its actual level of activity was 2,380 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

 

  Fixed element per month Variable element per tenant-day Revenue   ?   $ 41.90   Wages and salaries $ 3,720   $ 8.70   Food and supplies   1,460     14.50   Facility expenses   9,840     5.30   Administrative expenses   7,560     1.50   Total expenses $ 22,580   $ 30.00  

Actual results for October:

 

        Revenue $ 96,312   Wages and salaries $ 23,411   Food and supplies $ 35,305   Facility expenses $ 23,199   Administrative expenses $ 11,025  

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


$35,970

$34,766

$35,988

$35,375

 


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