Question
Mcinerney 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
Mcinerney 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:
| Fixed element per month | Variable element per guest | Variable element per jeep | |||||||
| Revenue | $ | 0 | $ | 141 | $ | 0 | |||
| Tour guide wages | $ | 0 | $ | 0 | $ | 128 | |||
| Vehicle expenses | $ | 4,400 | $ | 18 | $ | 71 | |||
| Administrative expenses | $ | 3,100 | $ | 11 | $ | 0 | |||
In October, the company budgeted for 335 guests and 101 jeeps. The actual activity for the month was 390 guests and 136 jeeps.
Required:
Prepare the company's flexible budget for the actual level of activity in October.
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Energy Management Audit And Conservation
Authors: U. P. Kumar Chaturvedula
1st Edition
6202015985, 978-6202015981
