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 2,100 tenant-days, but its actual level of activity was 2,060 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 MonthVariable element per tenant-dayRevenue - $31.10 Wages and salaries$2,300 $7.20Food and supplies 1,000 8.10Facility expenses 9,500 2.70Administrative expenses 7,000 0.30Total 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 net operating income in the flexible budget for January would be closest to:
A. $6,021
B. $6,568
C. $6,257
D. $7,080
Answer: B
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