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(Solution Download) Galante Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one d


 

 

 

 

 

 

 

Galante 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 May, Kennel budgeted for 4,200 tenant-days, but

 

its actual level of activity was 4,180 tenant-days. Kennel has

 

provided the following data concerning the formulas used in its

 

budgeting and its actual results for May:

 

 


 

Data used in budgeting:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed

 

element

 

per month

Variable

 

element per tenant-day

  RevenueAc???$30.70

 

    

  Wages and

 

salaries

$3,200$6.70

 

    

  Expendables60011.50

 

    

  Facility

 

expenses

8,2003.70

 

    

  Administrative

 

expenses  

8,0000.10

 

    

  Total expenses

 

$20,000

 

 

$22.00     

 

 


 

Actual results for May:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Revenue$107,980

 

  

  Wages and

 

salaries

$23,520

 

  

  Expendables$36,792

 

  

  Facility

 

expenses

$19,270

 

  

  Administrative

 

expenses

 

$9,144   

 


 

The net operating income in the planning budget for May would be

 

closest to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$19,160
$16,366
$19,254
$16,540

 


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