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Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the kennel...

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Accounting

Vanderhyde 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 3,390 tenant-days, but its actual level of activity was 3,439 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 $ 45.00
Wages and salaries $ 5,250 $ 8.10
Food and supplies 1,780 15.10
Facility expenses 13,350 6.50
Administrative expenses 11,500 2.20
Total expenses $ 31,880 $ 31.90

Actual results for May:

Revenue $ 159,075
Wages and salaries $ 34,511
Foods and supplies $ 52,304
Facility expenses $ 34,634
Administrative expenses $ 18,771

The net operating income in the planning budget for May would be closest to:

$12,529

$18,534

$12,945

$18,998

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