Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cryan jeep tours operates jeep tours in the heart

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies....

50.1K

Verified Solution

Question

Accounting

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:
\table[[Revenue,\table[[Fixed element],[per month]],\table[[Variable element],[per guest]],\table[[Variable elemen],[per jeep]]],[0,$,117,$,0],[Tour guide wages,$,$,0,$,171],[Vehicle expenses,$4,600,$,5,$,60],[Administrative expenses,$1,100,$,4,$,0]]
In May, the company budgeted for 447 guests and 152 jeeps. The company's income statement showing the actual results for the month appears below:
\table[[\table[[Cryan Jeep Tours],[Income Statement],[For the Month Ended May 31]]],[Actual guests,,462],[Actual jeeps,,147],[Revenue,$,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).
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Civil Engineering
1.2K views

Q1: Analysis of forces and moments were done for a simply supported beam having span 10...

Biology
1.2K views

1. Please discuss briefly the design and operation of batch heat sterilization of liquids. What factors...

Physics
1.2K views

Light with a wavelength of 500 nm (nano means one billionth or ) is incident upon...

Physics
1.2K views

What is the elastic potential energy stored in a spring whose spring constant is 160...

Calculus
1.2K views

Find a correct to 2 decimal places.NOTE: The triangle is NOT drawn to scale.1045540

Calculus
1.2K views

Use sigma notation to write the sum 4 4 5 2 5 3 i 1...

Algebra
1.2K views

Find the interval of convergence of the series 8 n 0 x 9 n 7n...

Accounting
1.2K views

Harris Fabrics computes its plantwide predetermined overhead rate annually based on direct labor-hours....

Accounting
1.2K views

Department S had no work in process at the beginning of the period. It added...

Accounting
1.2K views

Which of the following is true of Overfitting? (Select All Answers that are Correct.) It...

Accounting
1.2K views

A -- 1 2 Risk Assessment Questionnaire Client: Esther Dothers Balance Sheet Date:31/12/2014 Revieved by:...

Accounting
1.2K views

For Twitter valuation, the investment banking team estimated the multiples for three comps, Facebook, LinkedIn,...