Virgen 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 3,700 tenant-days, but its actual level of activity was 3,690 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed Element per Month | Variable Element per Tenant-Day | |
---|---|---|
Revenue | $ 0 | $ 26.40 |
Wages and salaries | $ 2,500 | $ 6.10 |
Food and supplies | 1,300 | 9.70 |
Facility expenses | 8,600 | 2.60 |
Administrative expenses | 6,800 | 0.40 |
Total expenses | $ 19,200 | $ 18.80 |
Actual results for May:
Revenue | $ 92,626 |
---|---|
Wages and salaries | $ 23,919 |
Food and supplies | $ 37,833 |
Facility expenses | $ 18,594 |
Administrative expenses | $ 8,386 |
The administrative expenses in the planning budget for May would be closest to:
▸ $8,409
▸ $8,386
▸ $8,280
▸ $8,276