5Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two costdrivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The companypublishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85 passengers canbe accommodated on the tour boat. Data concerning the company's cost formulas appear below:ts-BookHintVessel operating costsAdvertisingAdministrative costsInsuranceFixedCost per cost per cost perMonthCruise Passenger$ 3.20$ 6,300 $ 473.00$ 2,700$ 33.00$ 5,600$ 3,600For example, vessel operating costs should be $6,300 per month plus $473.00 per cruite plus $3.20 per passengec The company'ssales should average $33,00 per passenger. In July, the company provided 52 cruises for a total of 3.150 passengers.Required:Prepare the company's flexible budget for JulyAlyeski ToursFlexible BudgetFor the Month Ended July 31$ 1.50

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Description: 5Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two costdrivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. Th

The flexible budget is prepared using standard rates and for the actual production level. The net…

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5 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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Cost per cost per Month Passenger $ 3.20 Cruise $ 6,300 $ 473.00 $33.00 $ 1.50 $ 2,700 $ 5,600 $ 3,000 For example, vessel operating costs should be $6,300 per month plus $473.00 per crui plus $3.20 per passenger The company's sales should average $33,00 per passenger. In July, the company provided 52 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

5 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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Cost per cost per Month Passenger $ 3.20 Cruise $ 6,300 $ 473.00 $33.00 $ 1.50 $ 2,700 $ 5,600 $ 3,000 For example, vessel operating costs should be $6,300 per month plus $473.00 per crui plus $3.20 per passenger The company's sales should average $33,00 per passenger. In July, the company provided 52 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

5
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 85 passengers can
be accommodated on the tour boat. Data concerning the company's cost formulas appear below:
ts-
Book
Hint
Vessel operating costs
Advertising
Administrative costs
Insurance
Fixed
Cost per cost per cost per
Month
Cruise Passenger
$ 3.20
$ 6,300 $ 473.00
$ 2,700
$ 33.00
$ 5,600
$ 3,600
For example, vessel operating costs should be $6,300 per month plus $473.00 per cruite plus $3.20 per passengec The company's
sales should average $33,00 per passenger. In July, the company provided 52 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
$ 1.50

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