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:
In November,the company budgeted for 348 guests and 143 jeeps.The actual activity for the month was 373 guests and 139 jeeps.
Required:
Prepare a report showing the company's activity variances for November.Label each variance as favorable (F)or unfavorable (U).

Question

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:
  In November,the company budgeted for 348 guests and 143 jeeps.The actual activity for the month was 373 guests and 139 jeeps.
Required:
Prepare a report showing the company's activity variances for November.Label each variance as favorable (F)or unfavorable (U).

Quizplus · Accepted Answer

The Answer of 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:
  In November,the company budgeted for 348 guests and 143 jeeps.The actual activity for the month was 373 guests and 139 jeeps.
Required:
Prepare a report showing the company's activity variances for November.Label each variance as favorable (F)or unfavorable (U).

Bruer Jeep Tours Operates Jeep Tours in the Heart of the Colorado