Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity ie 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:
tableRevenuetableFixed elementper monthtableVariable elementper guesttableVariable elemenper jeep$$Tour guide wages,$$$Vehicle expenses,$$$Administrative expenses,$$$
In May, the company budgeted for guests and jeeps. The company's income statement showing the actual results for the month appears below:
tabletableCryan Jeep ToursIncome StatementFor the Month Ended May Actual guests,,Actual jeeps,,Revenue$Expenses:Tour guide wages,,Vehicle expenses,,Administrative expenses,,Total expense,,Net operating income,$
Required:
Prepare a report showing the company's revenue and spending variances for May. Label each variance as favorable or unfavorable U
