Chuck Berry Kennel uses tenant-days as its measure of activity; an animal housed
ID: 2512603 • Letter: C
Question
Chuck Berry 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 December, the kennel budgeted for 4,700 tenant-days, but its actual level of activity was 4,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Data used in budgeting:
$21,200
$24.00
Actual results for December:
The net operating income in the planning budget for December would be closest to:
$12,496
$12,640
$19,639
$19,545
Chuck Berry 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 December, the kennel budgeted for 4,700 tenant-days, but its actual level of activity was 4,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for December:
Explanation / Answer
Calculate net operating income under planning budget :
so answer is b) $12640
Revenue (4700*31.20) 146640 Expense Total expense (4700*24+21200) 134000 Net operating income 12640