Exercise 9-5 Prepare a Flexible Budget with More Than One Cost Driver (LO9-5] 54:45 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 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 Month Cost per Cruise cost per Passenger Vessel operating costs $6,888 $ 477.be Advertising $ 2,788 Administrative costs $ 5,200 $ 1.50 Insurance $ 3.7ee $ 3.48 $33.ee ok nat For example, vessel operating costs should be 56.800 per month plus $477.00 per cruise plus $3.40 per passenger. The company's sales should average $31.00 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. ence: Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Adventising Administrative costs Insurance Total expense Net operating income 2 Exercise 9-8 Flexible Budgets and Activity Variances (L09-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,600 1148:19 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Cost per Repair-Hour $ 16.ee $ 7.60 $ 0.55 $ 1.70 $ 2,720 $ 5,78 $ 4,660 $ 3,99e Bok $ 0.70 int For example, wages and salaries should be $20,600 plus $16.00 per repair-hour. The company expected to work 2,600 repatr-hours In May, but actually worked 2,500 repair-hours. The company expects its sales to be $52.00 per repair-hour Required: Compute the company's activity vartances for May. (Indicate the effect of each varlance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (te, zero variance). Input all amounts as positive values.) int D -ences Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income