Velazques 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 |
|
$ |
97 |
|
$ |
0 |
|
| Tour guide wages |
$ |
0 |
|
$ |
0 |
|
$ |
105 |
|
| Vehicle expenses |
$ |
5,200 |
|
$ |
6 |
|
$ |
58 |
|
| Administrative expenses |
$ |
2,200 |
|
$ |
1 |
|
$ |
0 |
|
|
| In March, the company budgeted for 372 guests and 142 jeeps. The company's income statement showing the actual results for the month appears below: |
Velazques Jeep Tours
Income Statement
For the Month Ended March 31 |
| Actual guests |
|
363 |
| Actual jeeps |
|
144 |
|
|
|
| Revenue |
$ |
35,151 |
|
|
|
| Expenses: |
|
|
| Tour guide wages |
|
14,870 |
| Vehicle expenses |
|
15,850 |
| Administrative expenses |
|
2,563 |
|
|
|
| Total expense |
|
33,283 |
|
|
|
| Net operating income |
$ |
1,868 |
|
|
|
|
|
Required:
|
|
Complete the report showing the company's activity variances for March. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|