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

A) $13,990
B) $14,762
C) $11,898
D) $12,188

To find the net operating income in the flexible budget for December, we need to subtract the total variable expenses and fixed expenses from the budgeted revenue.

Budgeted revenue = $40 x 700 = $28,000
Total variable expenses = ($8 x 600) + ($6 x 100) = $5,200
Fixed expenses = $8,038

Therefore, net operating income = $28,000 - $5,200 - $8,038 = $14,762

Therefore, the best choice is B.

Net operating income = ($19.30 × 3,340)− $49,700 = $14,762
Reference: CH09-Ref19
Tessmer 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 January, the kennel budgeted for 3,100 tenant-days, but its actual level of activity was 3,090 tenant-days.The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for January:
Data used in budgeting: Actual results for January: