es Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5] 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 90 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cruise Vessel operating costs Advertising $ 6,200 $ 478.00 Cost per Passenger $ 3.10 $ 2,400 $ 5,100 $ 3,900 $ 31.00 $ 1.50 Administrative costs Insurance For example, vessel operating costs should be $6,200 per month plus $478.00 per cruise plus $3.10 per passenger. The company's sales should average $29.00 per passenger. In July, the company provided 60 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: Vessel operating costs Advertising Administrative costs Insurance +
es Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5] 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 90 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cruise Vessel operating costs Advertising $ 6,200 $ 478.00 Cost per Passenger $ 3.10 $ 2,400 $ 5,100 $ 3,900 $ 31.00 $ 1.50 Administrative costs Insurance For example, vessel operating costs should be $6,200 per month plus $478.00 per cruise plus $3.10 per passenger. The company's sales should average $29.00 per passenger. In July, the company provided 60 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: Vessel operating costs Advertising Administrative costs Insurance +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver
[LO9-5]
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 90 passengers can be accommodated on the tour boat. Data
concerning the company's cost formulas appear below:
Fixed
Cost per Cost per
Month Cruise
Vessel operating costs
Advertising
$ 6,200 $ 478.00
Cost per
Passenger
$ 3.10
$ 2,400
$ 5,100
$ 3,900
$ 31.00
$ 1.50
Administrative costs
Insurance
For example, vessel operating costs should be $6,200 per month plus $478.00 per cruise plus $3.10 per
passenger. The company's sales should average $29.00 per passenger. In July, the company provided 60
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29df1c43-2b3a-4794-bf2c-612414f0ba93%2Ffeadff89-f6e0-4909-8eda-94551916986f%2Fqijct8_processed.png&w=3840&q=75)
Transcribed Image Text:es
Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver
[LO9-5]
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 90 passengers can be accommodated on the tour boat. Data
concerning the company's cost formulas appear below:
Fixed
Cost per Cost per
Month Cruise
Vessel operating costs
Advertising
$ 6,200 $ 478.00
Cost per
Passenger
$ 3.10
$ 2,400
$ 5,100
$ 3,900
$ 31.00
$ 1.50
Administrative costs
Insurance
For example, vessel operating costs should be $6,200 per month plus $478.00 per cruise plus $3.10 per
passenger. The company's sales should average $29.00 per passenger. In July, the company provided 60
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:
Vessel operating costs
Advertising
Administrative costs
Insurance
+
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