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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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The solution explains how to prepare a Flexible Budget Performance Report.

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