Reference no: EM131185089
Faulkner Charter Boats company runs boating trips along the Alabama River. Below are actual and budgeted costs. A. Calculate a flexible budget by 10 charter increments (100 -140 charters). NOTE: Remember the rules about variable and fixed unit costs. Overhead Costs Variable overhead costs: Per Unit Budget Cleaning $55.00 per charter Maintenance $25.00 per charter Park usage fees $15.00 per charter Fixed overhead costs: Salaries and wages $12,000 per month Depreciation $3,000 per month Federal license fee $1,000 per month B. Compare the flexible budget from data in part A. above using actual costs below. Actual Costs - 110 charters Actual Budget Variance F or U Overhead Costs 110 Variable overhead costs: Cleaning $6,500 Maintenance $2,500 Park usage fees $1,500 Fixed overhead costs: Salaries and wages $11,000 Depreciation $2,000 Federal license fee $1,000
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