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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
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 helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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 income and expenses.
Question
Rakesh
![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 salings 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
$2,000
$ 5,100
$3,100
$3.30
$ 37.00
$1.50
Alyesk Tours
Flexible Budget
For the Month Ended July 31
Vessel operating costs
Advertising
Administrative costs
Insurance
Total expense
Net operating income
S
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb0b60bf8-6bfb-4fe9-a317-e53b72acb1fd%2F5961e457-ae9f-43cd-bd2e-a5b8b4ca007b%2Fat7xnx_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 salings 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
$2,000
$ 5,100
$3,100
$3.30
$ 37.00
$1.50
Alyesk Tours
Flexible Budget
For the Month Ended July 31
Vessel operating costs
Advertising
Administrative costs
Insurance
Total expense
Net operating income
S
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
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,
Accounting
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