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 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 sarings 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 For example, vessel operating costs should be $6,300 per month plus $479.00 per cruise plus $310 per passenger. The company's sales should average $34.00 per passenger In July, the company provided 55 cruises for a total of 3,050 passengers. Required: Prepare the company's flexible budget for July Revenue Expenses Fixed Cost Cost per cost per per month Cruise Passengee. $0,300 $479.00 $3.30 $2,000 55,100 $37.00 $3,100 $1.50 Alyeski Tours Flexible Budget For the Month Ended July 31 Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…