Velazques Jeep Tours operates jeep tours in the heart of the Colorado Rockies. T
ID: 2453835 • Letter: V
Question
Velazques Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:
Required:
Prepare a report showing the company's activity variances for March. Label each variance as favorable (F) or unfavorable (U). (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
per month Variable element
per guest Variable element
per jeep Revenue $ 0 $ 91 $ 0 Tour guide wages $ 0 $ 0 $ 107 Vehicle expenses $ 3,700 $ 4 $ 57 Administrative expenses $ 1,800 $ 1 $ 0
Explanation / Answer
Velazques Jeep Tours operates jeep tours in the heart of the Colorado Rockies. T
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