PROBLEM 2 (20 Points) Bubba\'s Charter Boat Service has provided the following d

Question

PROBLEM 2 (20 Points) Bubba's Charter Boat Service has provided the following data about its costs: Budgeted Fixed Costs Per Month Budgeted Revenue/ Actual Revenue/Costs $79,500 s 9,200 S 9,440 $12,800 S 2,670 S 5,980 S 835 S 5,360 Costs per Charter Revenue Salaries Cleaning S500 $60.50 $15.75 $9,150 Equipment Depreciation S12,100 Port Fees Maintenance S35.25 Utilities Slip Fees $860 $4,980 The company had 160 Charters during the past month. REQUIRED: Prepare a report showing the company's revenue and spending variances for the month.

Explanation / Answer

Bubba's Charter Boat Service

Flexible Budget Performance Report

For the month ended......

Revenue Variance : $ 500 Unfavorable

Spending Variance : $ 1,355 Unfavorable.

Actuals Revenue/ Spending Variances Flexible Budget Activity Level 160 160 $ $ $ Revenue 79,500 500 Unfavorable 80,000 Less : Expenses Salaries 9,200 50 Unfavorable 9,150 Cleaning 9,440 240 Favorable 9,680 Equipment Depreciation 12,800 700 Unfavorable 12,100 Port Fees 2,670 150 Unfavorable 2,520 Maintenance 5,980 340 Unfavorable 5,640 Utilities 835 25 Favorable 860 Slip Fees 5,360 380 Unfavorable 4,980 Total Expenses 46,285 1,355 Unfavorable 44,930 Net Operating Income 33,215 1,855 Unfavorable 35,070

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