Question

Vanderhyde 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, the kennel budgeted for 4,800 tenant-days, but its actual level of activity was 4,870 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Varlable element per tenant-day Flxed element per month 2$ Revenue 34.00 8.70 Wages and salarles 4,350 Food and supplies 2,470 14.80 Facility expenses 11,650 6.20 9,650 Administrative expenses 1.90 %24 28,120 31.60 Total expenses Actual results for May: 170.020 Revenue Wages and salaries 48,214 Foods and supplies 73,051 Facility expenses 40,714 Administrative expenses $4 18,578 The wages and salaries in the planning budget for May would be closest to: O $47,323 O $46,110 O $48,214 O $46,398

Answer 1

$46,110
Wages and salaries in the planning budget for May
($4,350 + $8.70 x 4,800)