12 Canyon Adventures operates tours ranturcs peratestours and uses two measures

Question

12 Canyon Adventures operates tours ranturcs peratestours and uses two measures of its activity, Guess and Excursions. Jeep cost data for the budget and the month of August are below: Budget for Jeep Expenses Fixed Cost per Month Variable Cost per Guests Variable Cost per Excursion 5 4,600 per gue 60 per excursion BudgctActual Number of Guests in August Number of Excursion in August 447 152 462 147 Actual Jeep Expenses for the month of August 15,820 The August Spending Variance for Jeep Expenses would be closest to: A. $ 135 Favorable B. s 225 Favorable C. s 225 Unfavorable D. s 90 Favorable E. S 90 Unfavorable

Explanation / Answer

The correct alternative is option E. Actual quanity*Actual rate Actual quanity*Standard rate Variable jeep expenses =462*5       = 2310 =147*60       = 8820 Fixed jeep expenses Budgted       = 4600 Given 15820 Total 15730 =15730-15820 -90 Unfavourable Therefor option E is correct alternative

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