Bruer 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: Guests Jeeps Revenue Expenses: Fixed element per month Revenue $0 Tour guide wages Vehicle expenses $ 6,000 Administrative expenses $ 3,100 In November, the company budgeted for 370 guests and 165 Jeeps. The actual activity for the month was 384 guests and 150 Jeeps. Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Variable element per guest $183 Required: Prepare a report showing the company's activity variances for November. Label each varlance as favorable (F) or unfavorable (U). (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Flexible Budget $0 $ 22 $ 12 Bruer Jeep Tours Activity Variances For the Month Ended November 30 384 150 Variable element per jeep $ 178 $ 55 $0 Activity Variances Planning Budget 370 165

Bruer 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: Guests Jeeps Revenue Expenses: Fixed element per month Revenue $0 Tour guide wages Vehicle expenses $ 6,000 Administrative expenses $ 3,100 In November, the company budgeted for 370 guests and 165 Jeeps. The actual activity for the month was 384 guests and 150 Jeeps. Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Variable element per guest $183 Required: Prepare a report showing the company's activity variances for November. Label each varlance as favorable (F) or unfavorable (U). (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Flexible Budget $0 $ 22 $ 12 Bruer Jeep Tours Activity Variances For the Month Ended November 30 384 150 Variable element per jeep $ 178 $ 55 $0 Activity Variances Planning Budget 370 165

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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