TB Problem Qu. 9-426 Mcinerney Jeep Tours operates jeep tours... Mcinemey Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (ie, 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: Revenue Tour guide wages Vehicle expenses Administrative expenses Fixed element per month $. $ 4,150 2,850 $ Variable element per guest $ 116 5. $ 13 Variable element per Seep $ . $ 123 5 66 $6$. In October, the company budgeted for 330 guests and 96 jeeps. The actual activity for the month was 365 guests and 116 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in October.
TB Problem Qu. 9-426 Mcinerney Jeep Tours operates jeep tours... Mcinemey Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (ie, 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: Revenue Tour guide wages Vehicle expenses Administrative expenses Fixed element per month $. $ 4,150 2,850 $ Variable element per guest $ 116 5. $ 13 Variable element per Seep $ . $ 123 5 66 $6$. In October, the company budgeted for 330 guests and 96 jeeps. The actual activity for the month was 365 guests and 116 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in October.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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TB Problem Qu. 9-426 Mcinerney Jeep Tours operates jeep tours...
Mcinemey Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of
activity (ie, 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:
Revenue
Tour guide wages
Vehicle expenses
Administrative expenses
Fixed element
per month
$
e
e
$
$ 4,150
$ 2,850
Variable
element
per guest
$ 116
$0
$ 13
$ 6
Variable
element per
jeep
$ e
$123
$ 66
$ e
In October, the company budgeted for 330 guests and 96 jeeps. The actual activity for the month was 365 guests and 116 jeeps.
Required:
Prepare the company's flexible budget for the actual level of activity in October.
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