Exercise 09-5 Saved 1 2 points 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 87 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 $ 6,700 $ 478.80 $ 3.10 Advertising $ 2,600 Administrative costs $ 6,800 $ 35.ee Insurance $ 3,500 $1.50 eBook Hint For example, vessel operating costs should be $6.700 per month plus $470.00 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 3.200 passengers. Required: Prepare the company's flexible budget for July. Print References Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 1 ! Part 1 of 15 Required Information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 2 points Fixed Element per Month Variable Element per Customer Served $ 5,999 Actual Total for May $ 216,500 eBook Revenue Employee salaries and wages Travel expenses Other expenses $ 66,080 $ $ 1,300 580 $ 116,200 $ 19,700 $ 42,5ee $ 45,we Print When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. References Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget Required Information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element per Month Variable Element per Customer Served $ 5,988 Actual Total for May $ 216,500 Revenue Employee salaries and wages Travel expenses Other expenses $ 66,080 $ $ 1,300 588 $ 116, 200 $ 19,700 $ 42,500 $ 45,000 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 2 What amount of employee salaries and wages would be included in Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget Required Information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Actual Element Variable Element per Total per Month Customer Served for May Revenue 5,999 $ 216,500 Employee salaries and wages $ 66,080 1,308 $ 116,200 Travel expenses 19,709 Other expenses $ 45,988 $ 42,500 $ $ $ 588 $ When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 3. What amount of travel expenses would be included in Adger's flexible budget for May? Amount of travel expenses included in the flexible budget