Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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 80 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:
Fixed Cost per Month Cost per Cruise Cost per Passenger
Vessel operating costs $ 5,200 $ 480.00 $ 2.00
Advertising $ 1,700
Administrative costs $ 4,300 $ 24.00 $ 1.00
Insurance $ 2,900
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The companys sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers.
image text in transcribed
(I solved some of them, i just need help with the ones in the blank)
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 80 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Pixed cost Cost per Cost per per Month Cruise Passenger Vessel operating costs $ 5,200 $ 480.00 $ 2.00 Advertising $ 1,700 Administrative conta $ 4,300 $ 24.00 $ 1.00 Insurance $ 2,900 For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers. Required: Prepare the company's flexible budget for July. Alyoski Tours Flexible Budget For the Month Ended July 31 5 35,000 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 1,700 6.276 2.900 10,876 24.124 S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting International

Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young

4th Edition

0131230263, 978-0131230262

More Books

Students also viewed these Accounting questions

Question

15.7 Explain the six steps in the termination interview

Answered: 1 week ago

Question

15.1 Define employee relations and employee engagement.

Answered: 1 week ago