Bruer 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: Revenue Tour guide wages Vehicle expenses $0 $ 6,200 $ 26 Administrative expenses $ 3,300 $ 14 In November, the company budgeted for 374 guests and 169 jeeps. The actual activity for the month was 386 guests and 152 jeeps. Guests Jeeps Revenue Expenses: Fixed Variable element per element per month guest $ 187 $0 $0 Required: Prepare a report showing the company's activity variances for November. 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.) Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Variable element per jeep $0 $ 176 $ 53 $0 Bruer Jeep Tours Activity Variances For the Month Ended November 30 Flexible Budget 386 152 Activity Variances Planning Budget 374 169

Bruer 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: Revenue Tour guide wages Vehicle expenses $0 $ 6,200 $ 26 Administrative expenses $ 3,300 $ 14 In November, the company budgeted for 374 guests and 169 jeeps. The actual activity for the month was 386 guests and 152 jeeps. Guests Jeeps Revenue Expenses: Fixed Variable element per element per month guest $ 187 $0 $0 Required: Prepare a report showing the company's activity variances for November. 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.) Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Variable element per jeep $0 $ 176 $ 53 $0 Bruer Jeep Tours Activity Variances For the Month Ended November 30 Flexible Budget 386 152 Activity Variances Planning Budget 374 169

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Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 25P: Novo, Inc., wants to develop an activity flexible budget for the activity of moving materials. Novo...

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Bruer 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: Guests Jeeps Revenue Expenses: Fixed element per month Revenue $0 Tour guide wages Vehicle expenses $ 6,000 Administrative expenses $ 3,100 In November, the company budgeted for 370 guests and 165 Jeeps. The actual activity for the month was 384 guests and 150 Jeeps. Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Variable element per guest $183 Required: Prepare a report showing the company's activity variances for November. Label each varlance as favorable (F) or unfavorable (U). (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input…
Mcinerney 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 elementper month Variable elementper guest Variable element per jeep Revenue $ 0 $ 161 $ 0 Tour guide wages $ 0 $ 0 $ 132 Vehicle expenses $ 4,600 $ 22 $ 75 Administrative expenses $ 3,300 $ 15 $ 0 In October, the company budgeted for 339 guests and 105 jeeps. The actual activity for the month was 410 guests and 152 jeeps. Required: Prepare the company's flexible budget for the actual level of activity in October.
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 elementper month Variable elementper guest Variable element per jeep Revenue $ 0 $ 157 $ 0 Tour guide wages $ 0 $ 0 $ 167 Vehicle expenses $ 5,000 $ 9 $ 64 Administrative expenses $ 1,500 $ 8 $ 0 In May, the company budgeted for 467 guests and 172 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 482 Actual jeeps 167 Revenue $ 65,854 Expenses: Tour guide wages 28,357 Vehicle expenses 17,640 Administrative expenses 4,888 Total expense 50,885 Net operating…
NEED HELP ASAP!!!! 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 $0 $ 287 $0 Tour guide wages $0 $0 $ 154 Vehicle expenses $ 6,300 $ 22 $77 Administrative expenses $ 2,800 $ 21 $0 In May, the company budgeted for 532 guests and 237 jeeps. The company's income statement showing the actual results for the month appears below: Revenue 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 547 232 $ 122,854 38,757 24,140 11,388 74,285 $ 48,569 Required: Prepare a report showing the company's revenue…
TB Problem Qu. 9-401 (Algo) Cryan Jeep Tours operates jeep tours... 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: Actual guests Actual jeeps Revenue Expenses: Revenue Tour guide wages. Vehicle expenses. Administrative expenses In May, the company budgeted for 497 guests and 202 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 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income Guests Jeeps Revenue Expenses: Fixed element per month $0 $0 Tour guide wages Vehicle expenses Administrative expenses Total expense Net operating income $ 5,600 $ 2,100 512 197 $ 87,854 Required:…
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement 600 $ 2,020 $ 1,670 $ 55 $ 107,000 $ 18,000
Ozark Bird Hunters (OBH) conducts birding tours in the local area. The company owners create a management budget using two measures of activities (also referred to as cost drivers): Customers and Jeeps. Each tour conducted includes one field guide with one jeep. OBH uses the following data to create the budget: Fixed cost Variable cost per Variable cost per per month Customer Jeep Revenue $ 650 Field Guide fee $ 275 Jeep expenses $ 3,500 Administrative expenses $ 1,500 In April, the company budgeted for 500 customers and 100 jeeps. The actual activity for the month was 524 customers and 110 jeeps. Create a report showing the activity variances for April. The FORMAT of your report should look EXACTLY like the report in your textbook in Exhibit 9-6 on page 411. Label each variance as favorable (F) or Unfavorable (U). If rounding is required, round to the nearest whole dollar (for example, $10.666666667 would be $11)
Otomo 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: In July, the company budgeted for 352 guests and 122 jeeps. The company's income statement showing the actual results for the month appears below: Required: Prepare a report showing the company's activity variances for July. 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.)
Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sales Selling price per unit Cost per unit Variable selling and administrative expense (per unit) Fixed selling and administrative expense (per year) Interest expense for the year 680 $ 2,060 $ 1,680 $50 $ 200,000 $22,000 Required: Prepare the company's budgeted income statement for the year. Gig Harbor Boating Budgeted Income Statement < Prev 9 of 9 Next ........
Novo, Inc., wants to develop an activity flexible budget for the activity of moving materials. Novo uses eight forklifts to move materials from receiving to stores. The forklifts are also used to move materials from stores to the production area. The forklifts are obtained through an operating lease that costs 18,000 per year per forklift. Novo employs 25 forklift operators who receive an average salary of 50,000 per year, including benefits. Each move requires the use of a crate. The crates are used to store the parts and are emptied only when used in production. Crates are disposed of after one cycle (two moves), where a cycle is defined as a move from receiving to stores to production. Each crate costs 1.80. Fuel for a forklift costs 3.60 per gallon. A gallon of gas is used every 20 moves. Forklifts can make three moves per hour and are available for 280 days per year, 24 hours per day (the remaining time is downtime for various reasons). Each operator works 40 hours per week and 50 weeks per year. Required: 1. Prepare a flexible budget for the activity of moving materials, using the number of cycles as the activity driver. 2. Calculate the activity capacity for moving materials. Suppose Novo works at 80 percent of activity capacity and incurs the following costs: Prepare the budget for the 80 percent level and then prepare a performance report for the moving materials activity. 3. Calculate and interpret the volume variance for moving materials. 4. Suppose that a redesign of the plant layout reduces the demand for moving materials to one-third of the original capacity. What would be the budget formula for this new activity level? What is the budgeted cost for this new activity level? Has activity performance improved? How does this activity performance evaluation differ from that described in Requirement 2? Explain.
Using account analysis, Pymble Co. wishes to estimate employees' automobile expenses as a function of miles driven. Costs for the past quarter, during which 58,000 miles were driven, are classified as follows: Item Classification Cost $3,200 11,200 3,900 1,800 2,100 Fuel Variable Fixed Fixed Variable Fixed Depreciation Insurance Maintenance Parking Predict the total cost for the coming quarter for which the employees' auto travel budget would be 65,000 miles: $
Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs: - Hours worked Utility cost incurred Low point 1,300 $ 903 High point 1,680 1,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be Group of answer choices $947. $959. $954. $976.