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 89 passengers ca be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost Cost per Cost per per Month $ 6,800 $ 2,900 Cruise Passenger $.471.00 $ 3.30 $ 5,400 $ 31.00 $ 1.50 $ 3,400 For example, vessel operating costs should be $6,800 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 55 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July.

Q: What are the important guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Serenity Company issued $100,000 of 6%, 10-year bonds when the market rate of interest was 5%. The…

A: Premium on bonds = Issue price of the bonds - Face value of the bonds = $107,722 - $100,000 =…

Q: Why was the Sarbanes-Oxley Act developed and enacted?

A: Introduction:- The Sarbanes–Oxley Act of 2002 is a federal law in the United States that sets…

Q: What would the journal entry be?

A: A pension plan is usually an agreement between the employer and employee wherein, the employer…

Q: What is ethical accounting

A: Ethics: At its most basic level, ethics is a set of moral rules that guide behavior. They have an…

Q: What is ALCO and what important duties do they perform?

A: A resource with economic value that a person, company, or country owns or controls with the…

Q: The introduction of a research summarizes the current understanding and background information of…

A: Answer:-  Research definition:- "Creative and methodical activity performed to improve the reservoir…

Q: count ROCE

A: ROCE stands for Return on Capital Employed.

Q: How is materiality concept applied?

A: Accounting principles:

Q: Do ethical standards have anything to do with culture and diversity?

A: Ethical standard The founders of the organization created a set of ethical guidelines to explain the…

Q: What does the DuPont identity tell us that ROE is affected by?

A: DuPont = Net profit margin*Asset turnover*Equity multiplierNet incomeRevenue*SalesAvg total…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.