Hubbard 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 January, the kennel budgeted for 2,200
tenant-days, but its actual level of activity was 2,160
tenant-days. The kennel has provided the following data concerning
the formulas used in its budgeting and its actual results for
January:
Data used in budgeting:
Fixed Element per Month
Variable element per tenant-day
Revenue
$0
$31.10
Wages and salaries
$2,300
$7.20
Food and supplies
1,000
8.10
Facility expenses
9,500
2.70
Administrative expenses
7,000
0.30
Total expenses
$19,800
$18.30
Actual results for January:
Revenue
$63,606
Wages and salaries
$17,282
Food and supplies
$18,346
Facility expenses
$14,432
Administrative expenses
$7,408
The wages and salaries in the planning budget for January would
be closest to:
Group of answer choices
None of the above
$17,420
$17,132
$18,140
$18,282
Hubbard Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one
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