(Solved) Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its ...

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 element per guest	Variable element per jeep
Revenue	$ 0	$ 117	$ 0
Tour guide wages	$ 0	$ 0	$ 171
Vehicle expenses	$ 4,600	$ 5	$ 60
Administrative expenses	$ 1,100	$ 4	$ 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
Actual guests	462
Actual jeeps	147
Revenue	$ 53,854
Expenses:
Tour guide wages	25,157
Vehicle expenses	15,640
Administrative expenses	2,888
Total expense	43,685
Net operating income	$ 10,169

Required:

Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its ...

Introduction to Managerial Accounting: Brewer Edition: 9e

Related Topics