Use slide text to emphasize your entire message.

Paulis 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 February, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 2,980 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Actual results for February:
The net operating income in the flexible budget for February would be closest to:

A) $18,080
B) $17,986
C) $16,482
D) $16,700

$150,000

Newcomb's (1961) research supports the adage

A) "beauty is only skin deep."
B) "familiarity breeds contempt."
C) "opposites attract."
D) "birds of a feather flock together."

Using the following information, prepare a factory overhead cost budget for Jacob Company where the total factory overhead cost is $206,500 at normal capacity
(100%). Include capacity at 60%, 80%, 100%, and 120%. Total variable cost is $15.25 per unit, and total fixed costs are $54,000. The information is for the month ended October 31.
(Hint: Determine units produced at normal capacity.)

Mod Clothiers makes women's clothes. It costs $28 000 to produce 5000 pairs of polka-dot polyester pants. They have been unable to sell the pants at their usual price of $50.00. The company is evaluating two alternatives. They could sell the pants 'as is' for a total of $15 000 or they could modify the pants at a cost of $3000 and sell them for a total of $20 000.
What would be the effect on profit of modifying the pants and selling them as opposed to selling 'as is'?

A) $8000 decrease
B) $11 000 decrease
C) $2000 increase
D) $3000 increase