Faulkner Charter Boats company runs boating trips along the Alabama River. Below
ID: 2727431 • Letter: F
Question
Faulkner Charter Boats company runs boating trips along the Alabama River. Below are actual and budgeted costs. A. Calculate a flexible budget by 10 charter increments (100 -140 charters). NOTE: Remember the rules about variable and fixed unit costs. Overhead Costs Variable overhead costs: Per Unit Budget Cleaning $55.00 per charter Maintenance $25.00 per charter Park usage fees $15.00 per charter Fixed overhead costs: Salaries and wages $12,000 per month Depreciation $3,000 per month Federal license fee $1,000 per month B. Compare the flexible budget from data in part A. above using actual costs below. Actual Costs - 110 charters Actual Budget Variance F or U Overhead Costs 110 Variable overhead costs: Cleaning $6,500 Maintenance $2,500 Park usage fees $1,500 Fixed overhead costs: Salaries and wages $11,000 Depreciation $2,000 Federal license fee $1,000
Explanation / Answer
Answer:a
Answer:b
Flexible budget Particulars 100 110 120 130 140 Variable expenses: Cleaning 5500 6050 6600 7150 7700 Maintenance 2500 2750 3000 3250 3500 Park usage fees 1500 1650 1800 1950 2100 Total variable cost 9500 10450 11400 12350 13300 Fixed expenses: Salaries and wages 12000 12000 12000 12000 12000 Depreciation 3000 3000 3000 3000 3000 Federal license Fee 1000 1000 1000 1000 1000 Total fixed costs 16000 16000 16000 16000 16000 Total cost 25500 26450 27400 28350 29300Related Questions
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