Mcinerney 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:
In October, the company budgeted for 325 guests and 91 jeeps. The actual activity for the month was 340 guests and 96 jeeps.Required:Prepare the company's flexible budget for the actual level of activity in October.
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