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

Multiple Choice

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

A) $11, 200
B) $11, 400
C) $11, 960
D) $12, 121