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 88 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 $ 6,000 $ 475.00 $ 3.10 Advertising $ 2,600 Administrative costs $ 5,100 $39.00 $ 1.50 Insurance $ 3,900 For example, vessel operating costs should be $6,000 per month plus $475,00 per cruise plus $3.10 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 51 cruises for a total of 3,100 passengers. For example, vessel operating costs should be $6,000 per month plus $475.00 per cruise plus $310 per passenger. The company's sales should average $33.00 per passenger. In July, the company provided 51 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income S 0 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed cost Cost per per Month Car Washed Cleaning Supplies 50.70 Electricity $1,500 $ 0.08 Maintenance $ 0.20 Wages and salaries $4,600 $ 0.40 Depreciation $ 3,100 Rent $ 1,900 Administrative expenses $1,500 $ 0.02 For example, electricity costs are $1,500 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses Cleaning Supplies Electricity Maintenance Wages and stars Depreciation Rent Administrative senses Net Operating income Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed cost Cost per per Month Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.08 Maintenance $ 0.20 Wages and salaries $4,400 $ 0.20 Depreciation $ 8,100 $ 2,000 Administrative expenses $1,300 $ 0.04 Rent For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.40 per car washed. Required: Prepare the company's flexible budget for August Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salanes Depreciation Rent Administrative penses Toto pense Net operating income 0 $ 0
