Ozark Bird Hunters (OBH) conducts birding tours in the local area. The company owners create a management budget using two measures of activities (also referred to as cost drivers): Customers and Jeeps. Each tour conducted includes one field guide with one jeep. OBH uses the following data to create the budget: Fixed cost Variable cost per Variable cost per per month Customer Jeep Revenue $ 650 Field Guide fee $ 275 Jeep expenses $ 3,500 Administrative expenses $ 1,500 In April, the company budgeted for 500 customers and 100 jeeps. The actual activity for the month was 524 customers and 110 jeeps. Create a report showing the activity variances for April. The FORMAT of your report should look EXACTLY like the report in your textbook in Exhibit 9-6 on page 411. Label each variance as favorable (F) or Unfavorable (U). If rounding is required, round to the nearest whole dollar (for

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Ozark Bird Hunters (OBH) conducts birding tours in the local area. The company owners create a
management budget using two measures of activities (also referred to as cost drivers): Customers
and Jeeps. Each tour conducted includes one field guide with one jeep. OBH uses the following
data to create the budget:
Fixed cost
Variable cost per
Variable cost per
per month
Customer
Jeep
Revenue
$ 650
Field Guide fee
$ 275
Jeep expenses
$ 3,500
Administrative expenses
$ 1,500
In April, the company budgeted for 500 customers and 100 jeeps. The actual activity for the month
was 524 customers and 110 jeeps.
Create a report showing the activity variances for April. The FORMAT of your report should look
EXACTLY like the report in your textbook in Exhibit 9-6 on page 411. Label each variance as
favorable (F) or Unfavorable (U). If rounding is required, round to the nearest whole dollar (for
example, $10.666666667 would be $11)
Transcribed Image Text:Ozark Bird Hunters (OBH) conducts birding tours in the local area. The company owners create a management budget using two measures of activities (also referred to as cost drivers): Customers and Jeeps. Each tour conducted includes one field guide with one jeep. OBH uses the following data to create the budget: Fixed cost Variable cost per Variable cost per per month Customer Jeep Revenue $ 650 Field Guide fee $ 275 Jeep expenses $ 3,500 Administrative expenses $ 1,500 In April, the company budgeted for 500 customers and 100 jeeps. The actual activity for the month was 524 customers and 110 jeeps. Create a report showing the activity variances for April. The FORMAT of your report should look EXACTLY like the report in your textbook in Exhibit 9-6 on page 411. Label each variance as favorable (F) or Unfavorable (U). If rounding is required, round to the nearest whole dollar (for example, $10.666666667 would be $11)
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