Gordin 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 3,000 tenant-days, but its actual level of activity was 3,020 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 monthVariable element per tenant-dayRevenue - $27.60 Wages and salaries$2,000 $5.20Food and supplies 800 10.20Facility expenses 8,500 3.70Administrative expenses 6,000 0.10Total expenses$17,300 $19.20?Actual results for May: Revenue$86,322Wages and salaries$17,984Food and supplies$32,444Facility expenses$19,554Administrative expenses$6,162?The activity
variance for administrative expenses in May would be closest to:
A. $2 F
B. $138 U
C. $2 U
D. $138 F
Answer: C
You might also like to view...
Which mental templates are the patterns of thought we carry with us?
A. schemata B. overattributions C. perceptual sets D. frameworks
An implication of the demand-pull nature of the JIT production process is that
a. finished goods inventories must be available to meet customer demand, although raw material is delivered on an as-needed basis. b. more storage space for inventories is necessary. c. finished products are packaged and shipped to customers immediately, thus requiring minimal finished goods inventories. d. problem areas become less visible as inventories are reduced.
A favorable variance reflects a decrease in operating income
Indicate whether the statement is true or false
North American Properties, Inc, and its officers, directors, and shareholders, buy and sell securities. Section 16(b) of the Securities Exchange Act of 1934 covers
a. all purchases and sales of securities. b. only purchases and sales of securities involving misappropriation. c. only purchases and sales of securities involving short-swing profits. d. only purchases and sales of securities involving tippers and tippees.