Two photos one whole problem e Budgeting Jeep Tours operates jeep tours in the h

Question

Two photos one whole problem

e Budgeting Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity or cost drivers, namely guests and jeeps. One vehicle used in one tour oa one ay counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting: Revenue Tour guide wages Vehicle expenses Administrative expenses Fixed cost per month $0 $0 $4,400 S1,600 Variable cost per guest $144 S0 $5 $2 Variable cost per jeep $0 $136 S70 S0 In February, the company budgeted for 350 guests and 140 jeeps. The actual results for the month appear Hottle Jeep Tours For the Month Ended February 28 Actual guests 367 Actual jeeps 149 Revenue 552.508 Expenses: Tour guide wages Vehicle expenses Administrative expenses 22,477 16,855 2,734 Required: Prepare a performance report table, clearly showing the company's flexible budget, actual results, and flexible bad expense lines as shown above. Label each variance as favorable (F) or unfavorable (U). Offer brief comments on the company's operating performance for February get variances for February for the revenue line and each of the three

Explanation / Answer

Flexible Budget Actual Results Flex Budget Variance Actual Guests 350 367 -17 Actual Jeeps 140 149 -9 Total Revenue 49000 52508 -3508 Total Tour Guide Wages 19040 22477 -3437 Total Vehicle Expenses 15950 16855 -905 Total Admin Expenses 2300 2734 -434

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