Wrangler Jeep Tours takes people on jeep tours deep into the Colorado Rockies. When budgeting, the company uses two measures of activity (i.e., cost drivers): number of guests and 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:

Wrangler Jeep Tours takes people on jeep tours deep into the Colorado Rockies. When budgeting, the company uses two measures of activity (i.e., cost drivers): number of guests and 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: Revenue Tour guide wages Vehicle expenses Administrative expenses Fixed element per month $ 0 $ 0 $ 4,750 $ 3,450 Variable element per guest $ 176 $ 0 $ 25 $ 18 Variable element per jeep $ 0 $ 135 $ 78 $ 0 When the hot summer subsides, October is high season for Wranger. This year they budgeted for 342 guests and 108 jeeps. Due to the weather, the actual activity for the month was 425 guests and 164 jeeps. Required: Prepare a flexible budget for October so Wrangler can assess their actual performance against their planned budget. 425 164 Mcinerney Jeep Tours Flexible Budget For the Month Ended October 31 Actual guests Actual jeeps Revenue Expenses: Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income