Question

Check Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 86 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Cost per Cruise $ 471.00 Tixed cost per Month $ 6,500 $ 2,600 $ 5,600 $ 3,500 Vessel operating costs Advertising Administrative costs Insurance Cost per Passenger $ 3.30 $ 34.00 $1.50 For example, vessel operating costs should be $6,500 per month plus $471.00 per cruise plus $3.30 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 53 cruises for a total of 3,150 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense < Prev 19 of 22 Next >

Answer 1

Answer :- Alyeske Tours Flexible Budget for the month ended July 31 53 Cruises 3150 Actual Cruises Actual pcusengers $ 97,650 Revenue ( 3150 x $31) $41,858 $2600 $12,127 Expense: Vessel operating costs (nole-1) Advertising cookies Administrative costs (Nole-2) Insurance Tota Exреrу е Net operating Income, $ 3500 $60,085 #37,565 Nolesu:- vessel Operating costs = $6500 + (53x $471) +($3-30x3150) $41,858 nole (2); - foto Administrative costs - $ 5600+ (53x $34) +( $ 1.50x 6 3150) = $12,127 =XZ