\f\fAlyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identied 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 sufcient demand. Up to 84 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 $ 6,200 $479.00 $ 3.40 Advertising 5 2,900 Administrative costs $ 5,600 $ 36.00 $ 1.50 Insurance 5 3,200 For example, vessel operating costs should be $6,200 per month plus $479.00 per cruise plus $3.40 per passenger. The company's sales should average $34.00 per passenger. In July, the company provided 51 cruises for a total of 3,000 passengers. Required: Prepare the company's exible budget for July. vessel operating costs Advertising Administrative (206E Insurance Total expense 0 Net operating income $ 0 You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the companfs costing system and \"do what you can to help us get better control of our manufacturing overhead costs.'' You nd that the company has never used a exible budget, and you suggest that preparing such a budget would be an excellent rst step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cast in Cost Formula [larch Utilities $16,100 + $0.19 per machinehour $ 21,320 Maintenance $38,300 + $1.40 per machinehour $ 57,300 Supplies $0.90 per machinehour $ 16,000 Indirect labor $95,000 + $1.60 per machinehour $124,700 Depreciation $68,400 $ 70,100 During March,the company worked 16,000 mac hinehours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2 Calculate the spending variances for March. Conulete this mlestion Iw entering your answers 'II the tabs below. Required 1 Required 2 Calcitlate the activtv variances for Mardt. (Indicate the effect of each variance by selecting "F" for favorable, 'U" for unfavorable, and "None" for no effect G.e., zero variance). Input all amounts as positive values.) Utilities Maintenance Supplies Indirect labor D e pre at at o n Total \f
