Bruer 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:
Revenue.
Tour guide wages
Vehicle expenses
Administrative expenses
Fixed element
per month.
$0
$0
$ 6,000
$ 3,100
Variable
element per
guest
$183
$0
$22
$ 12
Variable.
element per
jeep
$0
$ 178
$ 55
$0
In November, the company budgeted for 370 guests and 165 jeeps. The actual activity for the month was 384 guests and 150 jeeps.
Required:
Prepare a report showing the company's activity variances for November. Label each variance as favorable (F) or unfavorable (U).
(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
variance). Input all amounts as positive values.)