Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management Identifiedtwo cost drivers for budgeting purposes-the number of cruises and the number of passengers. The companypublishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below:Vessel operatingcostsAdvertisingFixedCostCostper per Cost perMonth Cruise Passenger$$ 3.306,000 470.00$$2,400Administrative$$$ 1.50costs5,700 35.00Insurance$3,700For 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 of3,200 passengers.Required:Prepare the company's flexible budget for July.Alyeski ToursFlexible BudgetFor the Month Ended July 31RevenueExpenses:Vessel operating costsAdvertisingAdministrative costsInsuranceTotal expenses0Net operating income$0

A flexible budget predicts how the revenues and expenses will change in response to changes in the…

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

See similar textbooks

Similar questions

Please do not give solution in image format thanku
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.…
WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year (= 350 days × 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultant’s report shows the following: Activity Activity Measure (cost driver) Unit Cost (cost per unit of activity) Flying and maintaining aircraft Number of flights $ 1,800 per flight Serving passengers Number of passengers $ 5 per passenger Advertising and marketing Number of promotions $ 53,000 per promotion WSM estimates the following annual information. With 16 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $235. The lease of the 60-seat aircraft will cost $4,600,000. Other equipment costs will be $2,300,000. Administrative and other marketing costs will be $1,250,000. Required: a. What…
Goda
Rahul
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.
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…
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: Fixed Cost per Month $ 6,100 $ 2,400 $ 5,300 $ 3,900 Cost per Cruise $ 472.00 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…
Please do not give solution in image format thanku
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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 84 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 Cruise $ 6,500 $ 479.00 $ 2,900 Passenger $ 3.00 $ 5,300 $ 30.00 $ 3,400 $ 1.50 For example, vessel operating costs should be $6,500 per month plus $479.00 per cruise plus $3.00 per passenger. The company's sales should average $31.00 per passenger. In July, the company provided 57 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…
Alternative denominator-level capacity concepts, effect on operating income. Castle Lager has just purchased the Jacksonville Brewery. The brewery is two years old and uses absorption costing. It will “sell” its product to Castle Lager at $47 per barrel. Peter Bryant, Castle Lager’s controller, obtains the following information about Jacksonville Brewery’s capacity and budgeted fixed manufacturing costs for 2017:

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS