III. Flexible Budgeting (20 points total) At Disney World in Orlando, Florida there is an outdoor camping facility called Fort Wilderness The Fort sits on a 10,000 wooded-acre site. Disney offers scenic tours around Fort Wilderness using Disney characters. Data for the Fort Wilderness operation appear below: Disney World Amusement Park, Inc. Fort Wilderness Outdoor Facility For the month ended August 31 Actual Flexible Results Budget .50.. .55. Planning Budget .45 Scenic Tours (9)..... Revenue ($1009) ..$15,000 $16,200.......... ..$14,500 Expenses: Wages & Salaries ($2,000 $509)....$7,000.. $7,800 ..$6,000 Gasoline & Oil ($209) .2,000 .2,200 1,800 Theme Park Tickets ($300 $159).....1,800. ..2,400 1,200 Guest Bus Depreciation ($10). 1,000 1.400 .800 Administrative Expenses ($200+$49...400 400 300 Total Expenses... $12,200 $14,200 S10,100 Net Operating Income ..$2,800 $2,000 $4,400 The company measures its activity in terms of scenic tours. Tickets for the scenic tours can be purchased individually, or at a group discount for groups, clubs, etc. Required: 1. Utilizing the format covered in Ch.9, prepare a flexible budget report for August that includes revenue and spending variances and activity variances. (18 points) 2. Which of the variances should be of concern to management? Explain. (2 points) (note: do not spend time re-configuring the flexible budget for "q". Just prepare the columns for the variances.) III. Flexible Budgeting (20 points total) At Disney World in Orlando, Florida there is an outdoor camping facility called Fort Wilderness The Fort sits on a 10,000 wooded-acre site. Disney offers scenic tours around Fort Wilderness using Disney characters. Data for the Fort Wilderness operation appear below: Disney World Amusement Park, Inc. Fort Wilderness Outdoor Facility For the month ended August 31 Actual Flexible Results Budget .50.. .55. Planning Budget .45 Scenic Tours (9)..... Revenue ($1009) ..$15,000 $16,200.......... ..$14,500 Expenses: Wages & Salaries ($2,000 $509)....$7,000.. $7,800 ..$6,000 Gasoline & Oil ($209) .2,000 .2,200 1,800 Theme Park Tickets ($300 $159).....1,800. ..2,400 1,200 Guest Bus Depreciation ($10). 1,000 1.400 .800 Administrative Expenses ($200+$49...400 400 300 Total Expenses... $12,200 $14,200 S10,100 Net Operating Income ..$2,800 $2,000 $4,400 The company measures its activity in terms of scenic tours. Tickets for the scenic tours can be purchased individually, or at a group discount for groups, clubs, etc. Required: 1. Utilizing the format covered in Ch.9, prepare a flexible budget report for August that includes revenue and spending variances and activity variances. (18 points) 2. Which of the variances should be of concern to management? Explain. (2 points) (note: do not spend time re-configuring the flexible budget for "q". Just prepare the columns for the variances.)
