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,eee 5.471.00 $ 3.00 Advertising $ 2,600 Administrative costs $5,400 Insurance $ 3,300 $ 32.00 $1.50 For example, vessel operating costs should be $6,000 per month plus $471.00 per cruise plus $3.00 per passenger. The company's sales should average $34.00 per passenger. In July, the company provided 60 cruises for a total of 3.150 passengers. Required: Prepare the company's flexible budget for July Alyski Tours Flexible Budget For the Month Ended July 31 Revenue Epanos. Vessel corating costs Advertising Rret insurance Colecense netoperating home Lavage Rapide is a Canadian company that owns and operates a large automatic car wash taclity near Montreal the following table provides data concerning the company's costs: Fixed Cost per Month $1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $0.10 s@.30 $0.20 $4,100 $8.Je $2,180 $1,5ee S8.04 For example, electricity costs are $1.000 per month plus $0.10 per car washed. The company expects to wash 8.400 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8.50 S25.620 4.700 1.810 2.700 Revenue Expenses Cleaning supplies Electricity Maintenance Wagenaarles Depreciation Reni Administrative ApS Total exces in I 140 8010 2.300 27746 5 2714 Required: Prepares flexible budget performance repon that shows the company's revenue and sending variances and activity wadence for August Indicate the effect of each variance by selecting Fil for favorable. for unfavorable and None for no effect zero variance Inout all amounts as positive values Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Results Budget 8,500 Planning Budget Cars washed Revenue $ 55.020 Expenses Cleaning supplies Electrioty Maintenance Wages and salaries Depreciation Rent 4.700 1,810 2.760 8.140 8,300 2.300 Administrative expenses 1.728 Total Expense 27.746 27.274 Net operating income $
