Reef Slithering Riverboat Tours is a tour boat company that takes guests on a tour of the Mississippi river. The company bases its budgets on two measures of activity (i.e., cost drivers), guests and riverboats. Each time a riverboat is used in a tour it counts as one riverboat for budgeting purposes. Each riverboat has one tour guide. The company uses the following data in its budgeting:
During August, the company budgeted for 22 riverboats and 785 guests. The actual activity for August was 19 riverboats 710 guests.
Required:
Prepare a planning budget, a flexible budget, and a performance report showing the company's activity and revenue and spending variances for August. On the performance report indicate in each case whether the variance is favorable (F) or unfavorable (U).

Question

Reef Slithering Riverboat Tours is a tour boat company that takes guests on a tour of the Mississippi river. The company bases its budgets on two measures of activity (i.e., cost drivers), guests and riverboats. Each time a riverboat is used in a tour it counts as one riverboat for budgeting purposes. Each riverboat has one tour guide. The company uses the following data in its budgeting:
  During August, the company budgeted for 22 riverboats and 785 guests. The actual activity for August was 19 riverboats 710 guests.
Required:
Prepare a planning budget, a flexible budget, and a performance report showing the company's activity and revenue and spending variances for August. On the performance report indicate in each case whether the variance is favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Reef Slithering Riverboat Tours is a tour boat company that takes guests on a tour of the Mississippi river. The company bases its budgets on two measures of activity (i.e., cost drivers), guests and riverboats. Each time a riverboat is used in a tour it counts as one riverboat for budgeting purposes. Each riverboat has one tour guide. The company uses the following data in its budgeting:
  During August, the company budgeted for 22 riverboats and 785 guests. The actual activity for August was 19 riverboats 710 guests.
Required:
Prepare a planning budget, a flexible budget, and a performance report showing the company's activity and revenue and spending variances for August. On the performance report indicate in each case whether the variance is favorable (F) or unfavorable (U).

Reef Slithering Riverboat Tours Is a Tour Boat Company That