Discuss the below:
Q1: Palamino 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               Variable element       Variable element              
                              Per month                       per guest          per jeep
Revenue                       $0                                $144                $0
 Tour guide wages            $0                               $0                   $154
Vehicle expense             $3,300                            $14                $43
Administrative expenses   $2,400                            $4                  $0 
 
 Q2: In January, the company budgeted for 330 guests and 143 jeeps. The company's income statement showing the actual results for the month appears below:
 
 Palamino Jeep Tours
Income Statement
For the month Ended January 31
Actual Guests                320
Actual Jeeps                  139
Revenue                        $46,900
Expenses:
Tour guide wages        $20,996
Vehicle expenses           $13,977
Admn expenses               $3,630
Total expense                 $38,603
Net operating income      $8,387
Income StatemeFor the month Ended January 31