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

Multiple Choice

Tosta 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 2,100 tenant-days, but its actual level of activity was 2,050 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
-The net operating income in the flexible budget for May would be closest to:

A) $9,140
B) $8,420
C) $11,626
D) $12,200