Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (ie, cost

image text in transcribedimage text in transcribed
image text in transcribed
image text in transcribed
Cryan 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: 52 Variable Variable Fixed element element per element per per month guest jeep Revenue $ 0 $ 297 $ 0 Tour guide wages $0 $ 0 $ 153 Vehicle expenses $ 6,400 $ 23 $ 78 Administrative expenses $ 2,900 $ 22 $ 0 In May, the company budgeted for 537 guests and 242 jeeps. The company's income statement showing the actual results for the month appears below: 552 237 $ 127,854 Cryan Jeep Tours Income Statement For the Month Ended May 31 Actual guests Actual jeeps Revenue Expenses Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income 39,557 24,640 11,888 76,085 $ 51,769 Required: Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Required: Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Cryan Jeep Tours Revenue and Spending Variances For the Month Ended May 31 Actual Results Flexible Budget Revenue and Spending Variances 552 552 237 237 Guests Jeeps Revenue Expenses Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Financial Accounting For Business

Authors: Thomas Edmonds, Christopher Edmonds, Mark Edmonds, Jennifer Edmonds, Philip Olds

2nd Edition

1260575306, 978-1260575309

More Books

Students also viewed these Accounting questions

Question

7. One or other combination of 16.

Answered: 1 week ago