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

Multiple Choice

Pong 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 2,000 tenant-days, but its actual level of activity was 1,980 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) $8,001
B) $6,300
C) $8,164
D) $6,042