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