Question

Vanderhyde 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 3,330 tenant-days, but its actual level of activity was 3,373 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 month			Variable element per tenant-day
Revenue		−		$	39.00
Wages and salaries	$	3,800		$	7.50
Food and supplies		2,020			13.90
Facility expenses		10,200			5.30
Administrative expenses		10,000			1.00
Total expenses	$	26,020		$	27.70

Actual results for May:

Revenue	$	135,747
Wages and salaries	$	30,413
Foods and supplies	$	47,590
Facility expenses	$	27,067
Administrative expenses	$	13,108

The net operating income in the planning budget for May would be closest to:

$12,025

$11,609

$17,614

$18,078

Answer 1

Answer
Option B is correct option:
	Fixed	Variable	3330 units
Revenue		$           39	$         129,870
Wages and salaries	$        3,800	$          7.5	$           28,775
Food and supplies	$        2,020	$        13.9	$           48,307
Facility exp	$      10,200	$          5.3	$           27,849
Administrative exp	$      10,000	$             1	$           13,330
Total	Operating income		$           11,609