Mcinerney 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 $ 111 $ 0
Tour guide wages $ 0 $ 0 $ 122
Vehicle expenses $ 4,100 $ 12 $ 65
Administrative expenses $2700 $3 $ 0
In October, the company budgeted for 327 guests and 93 jeeps. The actual activity for the month was 350 guests and 104 jeeps
Required: Prepare the company's flexible budget for the actual level of activity in October.
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