Asked by Marisol Trejo on Apr 27, 2024
Verified
Billafuerte 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 July, the company budgeted for 496 guests and 233 jeeps.The actual activity for the month was 481 guests and 238 jeeps.
Required:
Prepare the company's planning budget for July.
Cost Drivers
Factors that cause the cost of an activity or process to change, affecting the overall cost of production.
Budgets
Financial plans that estimate income and expenditures for a specific period, often used for planning and control purposes.
Colorado Rockies
A major mountain range in western North America, extending from the northernmost part of British Columbia, in Canada, to New Mexico, in the southwestern United States.
- Prepare budget reports, including planning and flexible budgets.
- Understand the role of cost drivers in budgeting processes.
Verified Answer
SM
Learning Objectives
- Prepare budget reports, including planning and flexible budgets.
- Understand the role of cost drivers in budgeting processes.