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

Multiple Choice

Zenon 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 July, the kennel budgeted for 3, 300 tenant-days, but its actual level of activity was 3, 260 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Actual results for July: The net operating income in the flexible budget for July would be closest to:

A) $9, 700
B) $6, 599
C) $6, 762
D) $9, 340