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

Multiple Choice

Ordway 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 2,100 tenant-days, but its actual level of activity was 2,070 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for June:

Data used in budgeting:

Actual results for June:

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

A) $8,713
B) $9,159
C) $8,466
D) $9,570