8-1021
8-1022
393.
Hottle 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
$0
$144
$0
$0
$0
$163
$4,400
$5
$70
$1,600
$2
$0
In February, the company budgeted for 342 guests and 146 jeeps. The company’s income
statement showing the actual results for the month appears below:
Hottle Jeep Tours
Income Statement
For the Month Ended February 28
Actual guests
367
Actual jeeps
149
Revenue
$52,058
Expenses:
Tour guide wages
24,277
Vehicle expenses
16,555
Administrative expenses
2,374
Total expense
43,206
Net operating income
$8,852
Required:
Prepare a report showing the company’s revenue and spending variances for February.
Label each variance as favorable (F) or unfavorable (U).
8-1024
8-1025
394.
Cosme Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the
following data in its budgeting:
Fixed
element
per
month
Variable
element
per
student
Variable
element
per
course
Revenue
$0
$336
$0
Faculty wages
$0
$0
$2,000
Course
supplies
$0
$52
$30
Administrative
expenses
$47,700
$13
$29
In April, the school budgeted for 1,870 students and 174 courses. The school’s income
statement showing the actual results for the month appears below:
Cosme Tech
Income Statement
For the Month Ended April 30
Actual students
1,670
Actual courses
172
Revenue
$550,600
Expenses:
Faculty wages
350,110
Course supplies
93,040
Administrative expenses
75,728
Total expense
518,878
Net operating income
$31,722
Required:
Prepare a showing the school’s revenue and spending variances for April. Label each
8-1026
variance as favorable (F) or unfavorable (U).
8-1027
8-1028
395.
Coody Clinic uses patient-visits as its measure of activity. The clinic has provided the
following report:
Coody Clinic
Comparison of Actual Results to Planning
Budget
For the Month Ended July 31
Actual
Results
Planning
Budget
Variances
Patient-visits
2,000
2,300
Revenue
($36.40q)
$76,110
$83,720
$7,610
U
Expenses:
Personnel
expenses
($20,400 +
$10.40q)
43,240
44,320
1,080
F
Medical
supplies ($1,100
+ $6.60q)
13,990
16,280
2,290
F
Occupancy
expenses
($6,400 +
$1.50q)
9,800
9,850
50
F
Administrative
expenses
($2,400 +
$0.40q)
3,080
3,320
240
F
Total expense
70,110
73,770
3,660
F
Net operating
income
$6,000
$9,950
$3,950
U
Required:
8-1029
Prepare a report showing the clinic’s revenue and spending variances for July. Label each
variance as favorable (F) or unfavorable (U).
8-1030
8-1031
396.
Amundson 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
$0
$132
$0
$0
$0
$158
$4,700
$13
$79
$2,100
$2
$0
In September, the company budgeted for 456 guests and 155 jeeps. The company’s
income statement showing the actual results for the month appears below:
Amundson Jeep Tours
Income Statement
For the Month Ended September 30
Actual guests
481
Actual jeeps
153
Revenue
$62,222
Expenses:
Tour guide wages
23,664
Vehicle expenses
22,530
Administrative expenses
3,122
Total expense
49,316
Net operating income
$12,906
Required:
Prepare a report showing the company’s revenue and spending variances for September.
Label each variance as favorable (F) or unfavorable (U).
8-1032
8-1033
397.
Poljak Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the
following data in its budgeting:
Fixed
element
per
month
Variable
element
per
student
Variable
element
per
course
Revenue
$0
$296
$0
Faculty wages
$0
$0
$2,400
Course
supplies
$0
$50
$40
Administrative
expenses
$38,600
$14
$20
In February, the school budgeted for 1,970 students and 137 courses. The school’s
income statement showing the actual results for the month appears below:
Poljak Tech
Income Statement
For the Month Ended February 28
Actual students
2,370
Actual courses
142
Revenue
$712,020
Expenses:
Faculty wages
336,260
Course supplies
124,010
Administrative
expenses
73,660
Total expense
533,930
Net operating income
$178,090
Revenue ($296q1)
Net operating income
$178,090
$16,170
$161,920
Required:
Prepare a report showing the school’s revenue and spending variances for February.
Label each variance as favorable (F) or unfavorable (U).
8-1035
8-1036
398.
Blaney 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
$91
$0
Tour guide
wages
$0
$0
$178
Vehicle expenses
$4,500
$9
$43
Administrative
expenses
$1,300
$2
$0
Revenue ($91q1)
In October, the company budgeted for 456 guests and 115 jeeps. The actual activity for
the month was 446 guests and 111 jeeps.
Required:
Prepare the company’s flexible budget for the actual level of activity in October.
8-1037
8-1038
399.
Tammo 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
$0
$137
$0
$0
$0
$147
$3,700
$14
$72
$1,300
$2
$0
Budgeted jeeps (q2)
Revenue ($137q1)
($147q2)
In June, the company budgeted for 430 guests and 172 jeeps. The actual activity for the
month was 440 guests and 171 jeeps.
Required:
Prepare the company’s planning budget for June.
8-1039
8-1040
400.
Cruea Tech is a for-profit vocational school. The school bases its budgets on two
measures of activity (i.e., cost drivers), namely student and course. The school uses the
following data in its budgeting:
Fixed
element
per
month
Variable
element
per
student
Variable
element
per
course
Revenue
$0
$408
$0
Faculty wages
$0
$0
$2,400
Course
supplies
$0
$69
$46
Administrative
expenses
$33,100
$15
$33
Budgeted students (q1)
Budgeted courses (q2)
In November, the school budgeted for 1,410 students and 138 courses. The actual activity
for the month was 1,810 students and 139 courses.
Required:
Prepare the school’s planning budget for November.