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 Fixed Cost per Cost per Cost per Month Cruise $ 6,700 $ 473.00 $ 3,000 $ 5,100 $ 40.00 $ 3,400 Passenger $ 3.10 $ 1.50 For example, vessel operating costs should be $6,700 per month plus $473.00 per cruise plus $3.10 per passenger. The company's sales should average $28.00 per passenger. In July, the company provided 56 cruises for a total of 3,050 passengers.

The Theater Arts Guild of Dallas (TAG-D) employs 5 people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D productions. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $21 per layout page. The budget for the Publication Department for the current year is as follows: Salaries $332,600 Benefits 75,600 Supplies 40,300 Office expenses 50,400 Office depreciation 45,400 Computer depreciation 30,200 Total $574,500 The department expects to lay out 24,000 pages for the current year. The Publication Department office space and equipment would be used for future administrative needs, if the department's function were purchased from the outside. a.  Prepare a differential analysis dated February 22 to determine whether TAG-D should Lay Out Pages Internally…

Dazzle Party is a small business that produces decorative balloons for events. Dazzle Party uses normal costing and assigns manufacturing overhead (MOH) costs using labour hours as the allocation base. Budgeted and actual production data for the year 2023 is provided below. Budget $60,000 120,000 Actual $52,000 MOH costs Labour-hours 110,000 Required: Calculate the difference between the allocated MOH cost and the actual MOH cost incurred in 2023. Clearly state whether this difference represents a case of under-allocation or over-allocation of MOH.

Chocolate Bars, Inc. (CBI), manufactures creamy deluxe chocolate candy bars. The firm has developed three distinct products: Almond Dream, Krispy Krackle, and Creamy Crunch.   CBI is profitable, but management is quite concerned about the profitability of each product and the product costing methods currently employed. In particular, management questions whether the overhead allocation base of direct labor-hours accurately reflects the costs incurred during the production process of each product.   In reviewing cost reports with the marketing manager, Steve Hoffman, who is the cost accountant, notices that Creamy Crunch appears exceptionally profitable and that Almond Dream appears to be produced at a loss. This surprises both him and the manager, and after much discussion, they are convinced that the cost accounting system is at fault and that Almond Dream is performing very well at the current market price.   Steve decides to hire Jean Sharpe, a management consultant, to study the…