Mcinerney 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:
tableFixed element,Variable,elementVariable,elementper month,per guest,per jeep
In October, the company budgeted for guests and jeeps. The actual activity for the month was guests and jeeps.
Required:
Prepare the company's flexible budget for the actual level of activity in October.
tableMcinerney Jeep ToursFlexible Budget,For the Month Ended October Actual guests,Actual jeeps,RevenueExpenses:Tour guide wages,Vehicle expenses,Administrative expenses,Total expense,Net operating income,
