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2 Answers
- kristinLv 46 years ago
Foxworthy 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 July, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:
Fixed Element per month variable element per tenant-day
revenue……………. ----- $32.90
wages and salaries……………… $2,900 $7.40
expendables…………………. 400 9.70
facility expenses…………. 9100 2.50
administrative expenses………. 7400 0.40
total expenses…………. $19,800 $20.00
The administrative expenses in the planning budget for July would be closest to:
$8,220
$8,200
$8,300
$8,098
could you please explain how you got your answer thanks !