Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management hasidentified two cost drivers-the number of cruises and the number of passengers-that it uses in its budgetingand performance reports. The company publishes a schedule of day cruises that it may supplement with specialsailings if there is sufficient demand. Up to 90 passengers can be accommodated on the tour boat. Dataconcerning the company's cost formulas appear below: Fixed Cost per Month Cost per Cruise Cost perPassenger Vessel operating costs $6,700 $ 476.00 $3.30 Advertising $ 3,000 Administrative costs $5,100 $32.00 $ 1.50 Insurance $3,700 For example, vessel operating costs should be $6,700 per month plus $476.00per cruise plus $3.30 per passenger. The company's sales should average $34.00 per passenger. In July, thecompany provided 56 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budgetfor July.

Fixed Cost per Month Cost per CruiseCost per PassengerVessel operating costs…

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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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…
Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 5,700 6,800 3,900 8,100 27,200 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.90 each. Required a. Calculate the total relevant cost. Should Jordan continue to make the containers? b. Jordan could lease the space it currently uses in the manufacturing process. If leasing would produce $12.300 per rhonth, calculate the total avoidable costs. Should Jordan continue to make the containers? a. Total relevant cost Should Jordan continue to make the containers? b. Total avoidable cost Should Jordan continue to make the containers?
Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Your answer is correct. Total unit variable cost $ Total unit fixed cost Total unit cost eTextbook and Media (a2) Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. Per Unit $ Desired ROI per unit $ $30 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $ 40 10 6 86 Total 69 $2,220,000 155 1,920,000 Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.) Attempts: 1 of 5 used
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 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 $6,200 per month plus $473.00 per cruise plus $3.20 per passenger. The company's sales should average $29.00 per passenger. In July, the company provided 59 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: Fixed Cost Cost per per Month Cruise $ 473.00 Vessel operating costs…
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.
Nardin Outfitters has a capacity to produce 21,000 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,800 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs The company has received a special order for 2,300 tents at a price of $780 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $63 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case Required: a. What is the…
Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently: Direct material Direct labor Manufacturing overhead Total The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. PLEASE NOTE: Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). 1. What is Oat Treats' relevant cost? $14,000 6,000 8,000 $28,000 2. What does Simmons Cereal's offer cost? 3. If Oat Treats accepts the offer, what will the effect on profit be? o Incremental dollar amount = o Increase or Decrease? no quotes. Please note: Your answer is either "Increase" or…
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
Calculate the price per bench to be quoted, using the Finance Manager’s suggested approach of activity based costing
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 88 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 $ 6,400 Cruise $ 479.00 Cost per Passenger $ 3.40 $ 2,900 $ 5,700 $ 3,800 $ 38.00 $ 1.50 For example, vessel operating costs should be $6,400 per month plus $479.00 per cruise plus $3.40 per passenger. The company's sales should average $32.00 per passenger. In July, the company provided 50 cruises for a total of 3,150 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…
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 81 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Month Cost per Cruise Cost per Passenger $476.00 Vessel operating costs Advertising Administrative costs $ 6,800 $ 2,400 $ 5,300 $3,700 $3.20 $ 31.00 $1.50 Insurance For example, vessel operating costs should be $6,800 per month plus $476.00 per cruise plus $3.20 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 53 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget…
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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Fixed Cost Cost per per Cost per Month Cruise Passenger $ $ 3.30 6,000 470.00 $ $ 2,400 Administrative $ $ $ 1.50 costs 5,700 35.00 Insurance $ 3,700 For example, vessel operating costs should be $6,000 per month plus $470.00 per cruise plus $3.30 per passenger. The company's sales should average $28.00 per passenger. In July, the company provided 53 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31…

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