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

Multiple Choice

Gandrud 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 June, the kennel budgeted for 2,600 tenant-days, but its actual level of activity was 2,580 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the flexible budget for June would be closest to:

A) $11,640
B) $14,332
C) $11,382
D) $14,113