Velazques jeep tours operates jeep tours in the heart of

Reference no: EM13483756

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.)

Velazques Jeep Tours Activity Variances For the Month Ended March 31
Revenue	$

Expenses:
Tour guide wages
Vehicle expenses
Administrative expenses

Total expense

Net operating income	$

Reference no: EM13483756

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