Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
Planning
Budget
Activity
Variances
Flexible
Budget
Revenue and
Spending
Variances
Actual
Results
Flights (q)
50
48
48
Revenue ($320.00q)
$
16,000
$
640
U
$
15,360
$
1,710
U
$
13,650
Expenses:
Wages and salaries
($4,000 + $82.00q)
8,100
164
F
7,936
494
U
8,430
Fuel ($23.00q)
1,150
46
F
1,104
156
U
1,260
Airport fees ($650 + $38.00q)
2,550
76
F
2,474
124
F
2,350
Aircraft depreciation ($7.00q)
350
14
F
336
0
None
336
Office expenses ($190 + $2.00q)
290
4
F
286
174
U
460
Total expense
12,440
304
F
12,136
700
U
12,836
Net operating income
$
3,560
$
336
U
$
3,224
$
2,410
U
$
814
Question 18:Score 0/4
Your response
Correct response
Exercise 10-5 Prepare a Flexible Budget with More Than One Cost Driver [LO5]
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 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
$
5,200
$
480.00
$
2.00
Advertising
$
1,700
Administrative costs
$
4,300
$
24.00
$
1.00
Insurance
$
2,900
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's planning budget for July is based on 24 cruises and 1,400 passengers.
Required:
Prepare the company's planning budget for July. (Input all amounts as positive values. Omit the "$" sign in your response.)
Alyeski Tours
Planning Budget
For the Month Ended July 31
Revenue
$
1 (0%)
Expenses:
Vessel operating costs
1 (0%)
Advertising
1 (0%)
Administrative costs
1 (0%)
Insurance
1 (0%)
Total expense
1 (0%)
Net operating income
$
1 (0%)
Exercise 10-5 Prepare a Flexible Budget with More Than One Cost Driver [LO5]
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 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
$
5,200
$
480.00
$
2.00
Advertising
$
1,700
Administrative costs
$
4,300
$
24.00
$
1.00
Insurance
$
2,900
For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The company's sales should average $25 per passenger. The company's planning budget for July is based on 24 cruises and 1,400 passengers.
Required:
Prepare the company's planning budget for July. (Input all amounts as positive values. Omit the "$" sign in your response.)
Alyeski Tours
Planning Budget
For the Month Ended July 31
