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    Flexible Budget Performance Report

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    Preparing a Flexible Budget Performance Report [LO2]
    Canyonland Boat Charter Service rents live-aboard houseboats for cruising on the lake that traverses most of the Glen Canyon National Recreation area in Southern Utah. The company bases its overhead cost budgets on the following data:

    Variable overhead costs
    Cleaning $ 72.50 per charter
    Maintenance $ 56.25 per charter
    Park usage fees $ 15.75 per charter

    Fixed overhead costs
    Salaries and wages $ 7,860 per month
    Depreciation $ 13,400 per month
    Utilities $ 720 per month
    Moorage $ 3,670 per month
    ________________________________________

    Each time a boat is chartered, whether it is for one day or a week, certain costs must be incurred. Those costs are listed above under the variable overhead costs. For example, each time a boat returns from a charter, it must be thoroughly cleaned, which costs $72.50 on average.

    In August, the following actual costs were incurred for 140 charters:

    Cleaning $ 10,360
    Maintenance $ 7,630
    Park usage fees $ 2,210
    Salaries and wages $ 7,855
    Depreciation $ 14,450
    Utilities $ 735
    Moorage $ 3,950
    ________________________________________

    Due to an unanticipated surge in demand for charters, the company purchased a new boat in August to add to its charter fleet.

    Required:
    Construct a Flexible Budget Performance Report for Canyonland Boat Charter Service for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Omit the "$" sign in your response.)

    Canyonland Boat Charter Service
    Flexible Budget Performance Report
    For the Month Ended August 31
    Cost Formula (per charter) Actual Costs Incurred for 140 Charters Flexible Budget Based on 140 Charters Variance
    Variable overhead costs:
    Cleaning $
    $
    $
    $

    Maintenance
    $

    Park usage fees
    $

    Total variable overhead cost $
    $
    $
    $

    Fixed overhead costs:
    Salaries and wages $
    $

    Depreciation

    Utilities

    Moorage

    Total fixed overhead cost $
    $

    Total overhead cost $
    $
    $

    ________________________________________

    Hint 1

    ________________________________________

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