Question

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Answer 1

Amundson Jeep Tours

Flexible Budget Performance Report

For the month ended September 30

	Flexible Budget	Actual Results	Revenue and Spending Variances
Actual # of guests	481	481
Actual # of jeeps	153	153
Revenue	$ 63,492	$ 62,222	$ 1,270 U
Less: Expenses
Tour Guide Wages	$ 24,174	$ 23,664	$ 510 F
Vehicle Expenses	23,040	22,530	510 F
Administrative Expense	3,062	3,122	60 U
Total Expenses	$ 50,276	$ 49,316	$ 960 F
Net Operating Income	$ 13,216	$ 12,906	$ 310 U

Flexible budget values :

Revenue : 481 guests x $ 132 per guest = $ 63,492

Tour guide wages : 153 jeeps x $ 158 per jeep = $ 24,174

Vehicle expenses : $ 4,700 fixed + $ 13 per guest x 481 guests + $ 79 per jeep x 153 jeeps = $ 23,040.

Administrative expenses : $ 2,100 + $ 2 per guest x 481 guests = $ 3,062.