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 element per month Variable element per guest Variable element per jeep
Revenue $ 0 $ 111 $ 0
Tour guide wages $ 0 $ 0 $ 122
Vehicle expenses $ 4,100 $ 12 $ 65
Administrative expenses $2700 $3 $ 0
In October, the company budgeted for 327 guests and 93 jeeps. The actual activity for the month was 350 guests and 104 jeeps
Required: Prepare the company's flexible budget for the actual level of activity in October.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Mcinerney Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which of the following ratios are key components in measuring a company's operating efficiency? O Profit margin O Equity ratio O Return on total assets O Total asset turnover
Answers (1)
On January 1, Year 2, the Arlington Company had 100,000 shares of common stock issued and outstanding. On July 1, Year 2, the company sold 20,000 additional shares for cash. On August 1, a 25% stock dividend was distributed.
Answers (1)
Parties more interested in managerial accounting data than in financial accounting data include
Answers (1)
What is one way that business writing is different from argumentative writing? A. Business writing uses a specific structure, while argumentative writing isn't structured. B.
Answers (1)
On January 1, 2015, Fullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%).
Answers (1)
New Questions in Business
Which of the following is a compound sentence?
Answers (1)
You currently have $3,400 in an investment account that returns 11% per year. How long will you have to wait until you can make $5,000 down payment on a car? A loan you took out is due in three years and requires repayment of $3000.
Answers (1)
ptown Promotions has three divisions. As part of the planning process, the CFO requested that each division submit its capital budgeting proposals for next year.
Answers (1)
Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?
Answers (1)
Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.
Answers (1)