Business, 10.06.2021 18:50 slm1595

Otomo 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 $83 $0
Tour guide wages $0 $0 $103
Vehicle expenses $3,300 $7 $53
Administrative expenses $1,400 $1 $0

In July, the company budgeted for 353 guests and 123 jeeps. The company's income statement showing the actual results for the month appears below:

Otomo Jeep Tours Income Statement
For the Month Ended July 31
Actual guests 346
Actual jeeps 125
Revenue $28,658
Expenses:
Tour guide wages 12,625
Vehicle expenses 12,467
Administrative expenses 1,746
Total expense 26,838
Net operating income $1,820

Required:
Prepare a report showing the company's activity variances for July.

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Otomo Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its bud...

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