Maurice Tutor

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Category > Accounting Posted 28 Jul 2017 My Price 9.00

Pearse Kennel

Pearse 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 3,000 tenant-days, but its actual level of activity was 2,980 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      Variable
  per month per tenant-day
Revenue        $32.10
     
Wages & Salaries    $2,400      $ 7.00
Food & Supplies    $   900      $11.30
Facitlity Expenses    $8,600      $ 3.50
Admin Expenses    $6,700      $ 0.30
Total Expenses $18,600      $22.10

Actual results for December:

Revenue    $97,978
Wages & Salaries        $23,530
Food & Supplies    $35,224
Facility Expenses    $19,780
Admin. Expenses    $ 7,404

1. The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for December would be (show any unfavorable variance as a negative number): ??

2. The activity variance (show any unfavorable variance as a negative number) for net operating income in December would be: ??

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Maurice Tutor
(5)
Status NEW Posted 28 Jul 2017 09:07 PM My Price 9.00

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