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 5,000 tenant- days, but its actual level of activity was 5,074 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: Fixed element per Variable element per tenant-day month Revenue 36.00 Wages and salaries 3,600 8.90 Food and supplies 1,650 15.00 Facility expenses 13,700 6,40 Administrative expenses 11,350 2.10 $ 32.40 Total expenses 30,300 Actual results for May Revenue 187144 Wages and salaries 50.284 Foods and supplies 76,235 Facility expenses 45.024 21,670 Administrative expenses The wages and salaries in the planning budget for May would be closest to: O $49.313 O $48,100 O $50,284

Answer 1

Wages and salaries in the planning budget for May	48100	=3600+(5000*8.90)
Option B $48,100 is correct