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

Multiple Choice

Arkin 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 3,100 tenant-days, but its actual level of activity was 3,070 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:
Actual results for May:
-The administrative expenses in the planning budget for May would be closest to:

A) $7,228
B) $7,016
C) $6,948
D) $7,240