Alyeski 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 88 passengers canbe accommodated on the tour boat. Data concerning the company's cost formulas appear below:Cost perPassenger$ 3.30Fixed Costper MonthVessel operating costs$ 6,100Cost perCruise$ 474.00$ 2,300Administrative costs$ 5,800$ 3,900$ 30.00$ 1.50AdvertisingInsuranceFor example, vessel operating costs should be $6,100 per month plus $474.00 per cruise plus $3.30 per passenger. The company'ssales should average $29.00 per passenger. In July, the company provided 59 cruises for a total of 3,000 passengers.Required:Prepare the company's flexible budget for July.Alyeski ToursFlexible BudgetFor the Month Ended July 31RevenueExpenses:Vessel operating costsAdvertisingAdministrative costsInsuranceTotal expense0Net operating income$0

Lets understand the basics.The flexible budget is prepared using standard rates and for the actual…

Answered: Alyeski Tours operates day tours of…

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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Gonzales Corp. needs to set a target price for its newly designed product EverReady. The following data relate to this product. Per Unit Total Direct Material $20 Direct Labor $40 Variable manufacturing Overhead $10 Fixed manufacturing overhead $1,200,000 Variable selling and administrative $5 Fixed selling and administrative $1,120,000 The costs shown above are based on a budgeted volume of 80,000 units produced and sold each year. Gonzales uses cost-plus pricing methods to set its target selling price. Because some managers prefer absorption-cost pricing and others prefer variable-cost pricing, the accounting department provides information under both approaches using a markup of 50% on absorption cost and a markup of 70% on variable cost.…
4 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 Month Cruise $ 6,700 $ 473.00 $3,000 $ 5,100 $ 3,400 $ 40.00 Cost per Passenger $ 3.10 $ 1.50 For example, vessel operating costs should be $6,700 per month plus $473.00 per cruise plus $3.10 per passenger. The company's sales should average $28.00 per passenger. In July, the company provided 56 cruises for a total of 3,050 passengers.
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Revenue Instructor wages Classroom supplies Utilities $ 1,210 $ 4,800 $ 2,400 $ 3,500 Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $75 $ 45 For example, administrative expenses should be $3,500 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Cost per Student $300 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students.…
Fairchild produces jet bridges for many domestic and international airports. Cost information for 's jet bridges is as follows: Data table Variable costs per jet bridge: Materials 5,300 Labor 3,300 Manufacturing Overhead 6,600 Selling 900 General and administrative 1,100 Fixed costs for the first 3 quarters of 2020: $ 999,000 allocated based on budgeted production $ 440,000 $ 785,000 Manufacturing Overhead Selling General and administrative Additional information for the first three quarters of 2020 for Fairchild are shown below: Data table 1st Quarter 2nd Quarter 3rd Quarter Budgeted production 71 77 74 Actual production 71 77 74 Sales 66 71 64 Sales price: $37,000 per jet bridge Fixed selling costs by quarter 150,000 150,000 140,000 Fixed G&A costs by quarter 345,000 220,000 220,000 Requirement 1. Prepare an absorption costing income statement. Requirement 2. Prepare a variable costing income statement Requirement 3. Prepare a throughput costing income statement.
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Prepare a columnar flexible budget for Flaming Foliage Sky Tours’ expenses, using air miles as the cost driver at the following activity levels: 21,000 air miles, 25,000 air miles, and 28,000 air miles.
None
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposes-the number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 87 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance For example, vessel operating costs should be $6,500 per month plus $475.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. In July, the company provided 57 cruises for a total of 3,150 passengers. Required: Prepare the company's flexible budget for July. Revenue Expenses: Fixed Cost per Cost per Month Cruise $6,500 $475.00 $ 2,100 $ 5,700 $31.00 $ 3,500 Alyeski Tours Flexible Budget For the Month Ended July 31 Vessel operating…
Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Computing contribution margin per unit, breakeven point in sales units Compute the contribution margin per unit and the number of tickets Funday Park must sell to break even. Perform numerical proof to show that your answer is correct.
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