Rhed 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 3,700 tenant-days, but its actual level of activity was 3,650 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: Fixed element per monthVariable element per tenant-dayRevenue - $33.90 Wages and salaries$2,200 $7.70Food and supplies 1,400 12.90Facility expenses 8,200 4.40Administrative expenses 6,200 0.40Total expenses$18,000 $25.40?Actual results for December:? Revenue$122,235Wages and salaries$30,575Food and supplies$47,455Facility expenses$24,360Administrative
expenses$7,460?The facility expenses in the flexible budget for December would be closest to:
A. $24,694
B. $24,260
C. $24,031
D. $24,480
Answer: B
Business
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