PROBLEM 2: Flexible Budget with More Than One Cost Driver La-yas Travels operates day tours in Palawan on its tour boat the Deep Rivers, Management has identified two cost drivers--the number of travels 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: Fixed Cost per month Cost per Cruise Cost per Passenger Vessel operating costs P208.000 P19.200 P80 Administrative costs 172.000 960 40 Advertising 68,000 Insurance 116.000 For example, vessel operating costs should be P208,000 per month plus P19.200 per cruise plus P80 per passenger The company's sales should average P1.000 per passenger. In July, the company provided 24 cruises for a total of 1.400 passengers Required: Using Exhibit 9-7 in the material provided to you as your guide, prepare the company's flexible budget for July