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: Cost per Cruise $ 472.00 Fixed Cost per Month $ 6,100 $ 2,400 $ 5,300 $ 3,900 Cost per Passenger $ 3.30 Vessel operating costs Advertising Administrative costs $ 38.00 $ 1.50 Insurance For example, vessel operating costs should be $6,100 per month plus $472.00 per cruise plus $3.30 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 60 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Actual passengers Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 2$

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: Cost per Cruise $ 472.00 Fixed Cost per Month $ 6,100 $ 2,400 $ 5,300 $ 3,900 Cost per Passenger $ 3.30 Vessel operating costs Advertising Administrative costs $ 38.00 $ 1.50 Insurance For example, vessel operating costs should be $6,100 per month plus $472.00 per cruise plus $3.30 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 60 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Actual passengers Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 2$

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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ABC, Inc., uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 45,000 unit next year,the unit product cost of a particular product is 15.60. The company's selling,general,and administrative expenses for this product are budgeted to be 1,035,000 in total for the year. The company has invested 280,000 in this product and expects a return on investment of 11%. The selling price for this product based on the absorption costing approach would be closest to: a. 39.28 b. 17.32 c. 97.20 d. 38.60
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…
Ocean Sails manufactures sailing boats in two models: the Wave Rider and the Stress Killer. The company currently uses a variable costing system for internal reporting purposes. Its budgeted profit statement for the year ended 31 March 2021 is provided in the following table: Wave Rider (£) Stress Killer (£) Total (£) Sales revenues 52,500,000 105,000,000 157,500,000 Variable cost of goods sold 39,343,750 79,800,000 119,143,750 Variable marketing & admin costs 6,300,000 12,600,000 18,900,000 Contribution margin 6,856,250 12,600,000 19,456,250 Fixed manufacturing overhead 3,500,000 Fixed marketing & admin costs 16,000,000 Profit (Loss) (43,750) The following information from the budget is also available: Wave Rider Stress Killer (Units) (Units) Opening inventory 5 8 Units produced 20 25 Closing inventory 15 5 Units…
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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: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,400 $ 478.00 $ 3.20 Advertising $ 2,600 Administrative costs $ 5,000 $ 32.00 $ 1.50 Insurance $ 3,300 For example, vessel operating costs should be $6,400 per month plus $478.00 per cruise plus $3.20 per passenger. The company’s sales should average $35.00 per passenger. In July, the company provided 51 cruises for a total of 3,000 passengers. Required: Prepare the company’s flexible budget for…
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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: 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…
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: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,600 $ 479.00 $ 3.00 Advertising $ 2,700 Administrative costs $ 5,900 $ 37.00 $ 1.50 Insurance $ 3,500 For example, vessel operating costs should be $6,600 per month plus $479.00 per cruise plus $3.00 per passenger. The company’s sales should average $29.00 per passenger. In July, the company provided 57 cruises for a total of 3,050 passengers. Required: Prepare the company’s flexible budget for…
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Prepare a flexible budget for the three sales levels under consideration. Waterway manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,900 canoes, 3,340 canoes, and 3,550 canoes. Canoes sell for $990 each. The standard variable cost information for a canoe is as follows. Direct materials $ 297 Direct labor 112 Variable overhead Utilities 35 Indirect material 30 Indirect labor 60 Total $ 534 Annual fixed overhead cost is expected to be: Maintenance $ 20,600 Depreciation 43,500 Insurance 29,500 Rent 33,690 Total $ 127,290
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…