part a

part b

Exercise 9-3 Prepare a Flexible Budget with More Than One Cost Driver (LO9-3) 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 83 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 $ 6,500 $ 479.00 $ 3.20 Advertising $2,100 Administrative costs $ 5,600 $ 31.00 $1.50 Insurance $3,200 For example, vessel operating costs should be $6,500 per month plus $479,00 per cruise plus $3.20 per passenger. The company's sales should average $28.00 per passenger. In July, the company provided 55 cruises for a total of 3,100 passengers. Required: Prepare the company's flexible budget for July Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expense Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,380 kilograms of plastic. The plastic cost the company $15,708. According to the standard cost card, each helmet should require 0.60 kilograms of plastic, at a cost of $700 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (S) that is allowed to make 3,500 helmets? 2. What is the standard materials cost allowed ( SSP) to make 3,500 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. 2 3 14 Standard quantity of kilograms alowed Standard cost allowed for actual output Materials spending van on Material price variance Material quantity variance