Meinke 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 April, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,680 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for April:Data used in budgeting: Actual results for April:
The administrative expenses in the planning budget for April would be closest to:

A) $7,972
B) $8,052
C) $7,980
D) $8,096

According to the data given, the budgeted amount for administrative expenses was $29,600, which was based on a variable cost of $8 per tenant-day and a fixed cost of $1,400 per month.

To calculate the actual administrative expenses, we need to use the actual level of activity (3,680 tenant-days) and the actual variable cost per tenant-day ($7.80).

Actual administrative expenses = Actual variable cost per tenant-day x Actual level of activity + Fixed cost
Actual administrative expenses = $7.80 x 3,680 + $1,400
Actual administrative expenses = $28,704

Therefore, the closest option to the actual administrative expenses would be option C) $7,980.