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My daughter is out in Colorado doing an internship for her business degree. She is working at Palomino Jeep Tours. The company bases its budgets
My daughter is out in Colorado doing an internship for her business degree. She is working at Palomino Jeep Tours. The company bases its budgets on two measures of activity... the number of guests and the number of 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. For March, my daughter gave me the planning budget (330 guests and 143 jeeps) and the actual results (320 guests and 139 jeeps) and asked me what happened. The Net Income was better than planned but the Revenue was lower than planned. I told her that she should do a flexible budget based on the actual activity (320 guests and 139 jeeps) to get a better idea of what happened. Can you complete the flexible budget performance report below? Don't forget to indicate if the variance is favorable or unfavorable
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