Malander 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 November, the kennel budgeted for 3,400 tenant-days, but its actual level of activity was 3,390 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for November:Data used in budgeting: Fixed element per monthVariable element per tenant-dayRevenue - $28.00 Wages and salaries$2,700 $5.40Food and supplies 500 10.20Facility expenses 9,600 3.30Administrative expenses 6,600 0.20Total expenses$19,400 $19.10?Actual results for November: Revenue$90,470Wages and salaries$20,606Food and supplies$35,838Facility expenses$20,857Administrative
expenses$7,518?The revenue variance for November would be closest to:
A. $4,450 F
B. $4,730 U
C. $4,450 U
D. $4,730 F
Answer: C
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Which of the following is a method of reducing non-sampling risk?
a. Proper supervision and instruction of the client's employees. b. Proper supervision and instruction of the audit team. c. The use of attributes sampling rather than variables sampling. d. Controls to ensure that the sample drawn is random and representative.
In what section of a formal report would a reader find content-specific headings?
A) Executive summary B) Reference list C) Title page D) Detailed discussion E) Introduction
How will the payee of the promissory note record the note on its books?
A) The promissory note will be recorded as an asset B) The promissory note will be recorded as a liability C) The promissory note will be recorded as an equity D) The promissory note will be recorded as an expense
Informal agency procedures may include:
a. tests and inspections b. processing applications c. negotiations with parties in trouble d. advisory opinions e. all of the other choices