Hubbard Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

Multiple Choice

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:
Actual results for January:
The net operating income in the flexible budget for January would be closest to:

A) $6,568
B) $6,021
C) $6,257
D) $7,080