EXERCISE 11-2 (15 MINUTES)

1. Orcas Boat Charter Service

Flexible Budget Performance Report

For the Month Ended July 31

Actual Costs

Budget

Cost Formula

Incurred for

Based on

(per charter)

160 Charters

160 Charters Variance

Variable overhead costs:

Cleaning... $ 60.50 $ 9,440 $ 9,680 $ 240 F

Maintenance... 35.25 5,980 5,640 340 U

Port fees ... 15.75 2,670 2,520 150 U

Total variable overhead costs .... $111.50 18,090 17,840 250 U

Fixed overhead costs:

Salaries and wages ... 9,200 9,150 50 U

Depreciation ... 12,800 12,100 700 U

Utilities... 835 860 25 F

Moorage... 5,360 4,980 380 U

Total fixed overhead costs ... 28,195 27,090 1,105 U

Total overhead costs ... $46,285 $44,930 $1,355 U