Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two costdrivers-the number of cruises and the number of passengers-that it uses in its budgeting and performance reports. The companypublishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers canbe accommodated on the tour boat. Data concerning the company's cost formulas appear below:Fixed Cost per Month Cost per Cruise Cost per Passenger$ 480.00Vessel operating costsAdvertisingAdministrative costs$ 5,200$1,700$ 4,300$ 2,900$2.00$ 24.00$1.00InsuranceFor example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's salesshould average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers.Required:Prepare the company's flexible budget for July.Alyeski ToursFlexible BudgetFor the Month Ended July 31RevenueExpenses:Vessel operating costsAdvertisingAdministrative costsInsuranceTotal expenseNet operating income

Solution:- Preparation of the company’s flexible budget for July as follows under:- A flexible…

Answered: Required: Prepare the company's…

Business

Accounting

Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 3MTC

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es 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 80 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 Month $ 5,200 $1,700. $ 4,300 $ 2,900 Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget Cost per Cruise $480.00 $ 24.00 For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers. Cost per Passenger $ 2.00 $ 1.00
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 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Cost per Month Cruise Passenger 5,200 480.00 Vessel operating costs $ $ $2.00 Advertising $1,700 4,300 24.00 Administrative costs $ $ $ 1.00 2,900 Insurance $ For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's planning budget for July is based on 24 cruises and 1,400 passengers. Required: Complete the company's planning budget for July.
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 Cost per Cost per per Month $ 6,400 $ 2,900 $ 5,900 $ 3,200 Cruise Passenger $ 3.40 $ 475.00 Vessel operating costs Advertising Administrative costs $ 38.00 $ 1.50 Insurance For example, vessel operating costs should be $6,400 per month plus $475.00 per cruise plus $3.40 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 57 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible…
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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 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Required: Prepare the company's flexible budget for July. Fixed Cost per Month $ 6,300 $ 2,500 $ 5,900 $ 3,400 For example, vessel operating costs should be $6,300 per month plus $477.00 per cruise plus $3.10 per passenger. The company's sales should average $30.00 per passenger. In July, the company provided 57 cruises for a total of 3,200 passengers. Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: 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 83 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 $6,100 per month plus $476.00 per cruise plus $3.50 per passenger. The company's sales should average $32.00 per passenger. In July, the company provided 55 cruises for a total of 3,100 passengers. Fixed Cost Cost per Cost per per Month Cruise Passenger $ 6,100 $476.00 $ 3.50 $ 2,100 $ 1.50 $ 5,500 $ 35.00 $ 4,000 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 82 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 Cost per per Month Cruise $ 6,200 $ 476.00 $31.00 For example, vessel operating costs should be $6,200 per month plus $476.00 per cruise plus $3.40 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 56 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July. Revenue Expenses: $ 2,000 $ 5,700 $ 3,300 Alyeski Tours Flexible Budget For the…
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…
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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: 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…
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