Question 21

21) Cryan 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 elemert per guest Variable element per jeep 0 Revenue Tour guide wages Vehicle expenses Administrative expenses $ 4,600 1,100 s 60 0 In May, the company budgeted for 447 guests and 152 jeeps. The company's income statement showing the actual results for the month appears below Cryan Jeep Tours Income Statement For the Month Ended May 31 462 147 $ 53,854 Actual guests Actual jeeps Revenue Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income 25,157 15,640 43,685 $ 10,169 Prepare a variance report showing the company's revenue and spending variances for May