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Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver (L09-5) Alyeski Tours operates day tours of coastal glaciers in Alaska on

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Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver (L09-5) Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driyers-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: Tixed Cont per Month cont per Cruise Cost per Passenger Vessel operating coats $ 6,500 Advertising $ 2,900 Administrative costs $ 5,700 $ 30.00 Insurance $ 3,700 $ 480.00 53.10 $1.50 For example, vessel operating costs should be $6,500 per month plus $480,00 per cruise plus $3.10 per passenger. The company's sales should average $35.00 per passenger. In July, the company provided 53 cruises for a total of 3,200 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 Administrativo costs inn Cost per Cruise $ 480.00 Cont per Passenger $ 3.10 Vessel operating contu Advertising Administrative conte Insurance Tixed cost per Month 5 6,500 $ 2,900 $ 5.700 $ 3,700 $ 30.00 $1.50 For example, vessel operating costs should be $6,500 per month plus $480.00 per cruise plus $3.10 per passenger. The company's sales should average $35.00 per passenger. In July, the company provided 53 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July Alyoski Tour Flexible Budget For the Month Ended July 31 Revenue Expenses Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income

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