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

The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $22 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $377,500 Benefits 85,800 Supplies 45,800 Office expenses 57,200 Office depreciation 51,500 Computer depreciation 34,300 Total $652,100 The department expects to lay out 26,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside. a. Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally (Alternative 1) or Purchase…

2. The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Cost per Course Cost per Student $2,930 $280 $60 $1,240 $4,900 $2,300 $3,600 $46 $7 For example, administrative expenses should be $3,600 per month plus $46 per course plus $7 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September were as follows: 15+ D

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 90 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below:     Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,600 $ 471.00 $ 3.00 Advertising $ 2,300     Administrative costs $ 5,800 $ 34.00 $ 1.50 Insurance $ 3,300       For example, vessel operating costs should be $6,600 per month plus $471.00 per cruise plus $3.00 per passenger. The company’s sales should average $33.00 per passenger. In July, the company provided 54 cruises for a total of 3,150 passengers.   Required: Prepare the company’s flexible budget for…

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,200 $ 474.00 $ 3.30 Advertising $ 2,400 Administrative costs $ 5,200 $ 31.00 $ 1.50 Insurance $ 3,700 For example, vessel operating costs should be $6,200 per month plus $474.00 per cruise plus $3.30 per passenger. The company’s sales should average $31.00 per passenger. In July, the company provided 57 cruises for a total of 3,100 passengers. Required: Prepare the company’s flexible budget for July.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses: For example, administrative expenses should be $4,000 per month plus $43 per course plus $6 per student. The company's sales should average $880 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Fixed Cost per Cost per Cost per Month Student Course $ 2,940 $65 The company planned to run four courses with a total of 62 students; however,…

Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activity Cost Formula Maintenance $15,000 + $4 per machine hour Machining $35,000 + $1 per machine hour Inspection $60,000 + $750 per batch Setups $1,000 per batch Purchasing $50,000 + $10 per purchase order What is the budgeted maintenance cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Revenue Instructor wages Classroom supplies Utilities $ 1,210 $ 4,800 $ 2,400 $ 3,500 Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $75 $ 45 For example, administrative expenses should be $3,500 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Cost per Student $300 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students.…

Task 2 (Budgeting) Aqua Safe produces water purifiers for domestic use. The production expenses for the production of 5,000 units of water purifiers in its factory is given in Table T2: Materials Labour Variable Overheads Fixed Overheads Table T2 Administrative Expenses (5% Variable) Selling Expenses (20% Fixed) Distribution Expenses (10% Fixed) Total Cost of Sales (for 5,000 units) 4200 2100 1400 900 1000 570 480 10650 You are required to prepare a flexible budget for the production of 7000 units and 14000 units of water purifiers.

The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year.         Available capacity 9,400,000 pages Budgeted usage:     Software Development 2,460,000 pages Training 3,600,000 pages Management 2,940,000 pages Cost equation $307,000 + $0.06 per page   If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Management Department?   Multiple Choice   $247,887.   $276,687.   $256,878.   $130,829.