Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 86 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cruise Cost per Passenger $ 3.30 Vessel operating costs $ 479.00 $ 6,100 $ 2,500 Advertising $5,300 $ 39.00 $ 1.50 Administrative costs Insurance $ 3,900 For example, vessel operating costs should be $6,100 per month plus $479.00 per cruise plus $3.30 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 53 cruises for a total of 3,000 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Budgeted passengers Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income $ 0 0 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 86 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cruise Cost per Passenger $ 3.30 Vessel operating costs $ 479.00 $ 6,100 $ 2,500 Advertising $5,300 $ 39.00 $ 1.50 Administrative costs Insurance $ 3,900 For example, vessel operating costs should be $6,100 per month plus $479.00 per cruise plus $3.30 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 53 cruises for a total of 3,000 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31 Actual cruises Budgeted passengers Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income $ 0 0
Expert Answer:
Answer rating: 100% (QA)
Alyeski Tours Flexible Budget For the Month Ended July 31 Actual Cruises Act... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it...
-
Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in...
-
Icicle Bay Tours operates day tours of coastal glaciers in Alaska on its tour boat the Emerald Glacier. Management has identified two cost driversthe number of cruises and the number of...
-
What levels of visibility may be assigned to an attribute or an operation?
-
Yoder budgets $ 5 per luggage set for variable manufacturing overhead; $ 1,500 per month for depreciation; and $ 16,265 per month for other fixed manufacturing overhead costs. Use this information...
-
Compute the accumulated sum of the following payments: (a) $400 every six months for 4 years at 8% compounded semi-annually (b) $250 per month for 5 years at 7.5% compounded monthly.
-
A company issues a \(10 \%\) coupon bond that matures in 5 years. However, this company is in trouble, and it is estimated that each year there is a probability of .1 that it will default that year....
-
The following are costs associated with manufacturing firms, merchandising firms, or service firms: a. Miscellaneous materials used in production b. Salespersons commission in a real estate firm c....
-
= = = Standard Income Statement Financial Statements in CAD Dollars Using the numbers from the two income statements, fill in the percentages calculated for the common-sized vertical analysis, then...
-
Clinicians at a nursing home facility want to see if giving residents a plant to tend to will help lower depression. To test this idea, the residents are randomly assigned to one of three groups:...
-
What are the intricacies involved in fostering synergistic collaboration within a multidisciplinary team environment?
-
Some applications reada large dataset first and then modify most or all of it. The base MSI coherence protocol will first fetch all of the cache blocks in the Shared state and then be forced to...
-
For this exercise, consider a simplified equation for the total operational power of a WSC as follows: a. Assume an 8 MW datacenter at 80% power usage, electricity costs of $0.10 per kilowatt-hour,...
-
Some recent studies have defined a metric called TPUE, which stands for true PUE or total PUE. TPUE is defined as PUE * SPUE. PUE, the power utilization effectiveness, is defined in Section 6.4 as...
-
Power stranding is a term used to refer to power capacity that is provisioned but not used in a datacenter. Consider the data presented in Figure 6.37 [Fan, Weber, and Barroso, 2007] for different...
-
Consider the following breakdowns of the power consumption of a server: CPU, 50%; memory, 23%; disks, 11%; networking/other, 16% CPU, 33%; memory, 30%; disks, 10%; networking/other, 27% a. Assume a...
-
National Bike Tours, Inc. reported the following in its annual report: Amounts in thousands Year 2 Year 1 Net earnings $5,600 ...
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
Larned Corporation recorded the following transactions for the just completed month. a. $ 80,000 in raw materials were purchased on account. b. $ 71,000 in raw materials were requisitioned for use in...
-
Why do companies use sequential prenumbering for documents such as checks, sales invoices, and purchase orders?
-
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building....
-
Action Quest Games adjusts its accounts annually. The following information is available for the year ended December 31, 2025. 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash. 2....
-
Why is carbon such a special atom?
-
With each pass of a comet about the Sun, the comets mass (a) remains virtually unchanged. (b) actually increases. (c) is appreciably reduced.
Study smarter with the SolutionInn App