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Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5]
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 crulses and the number of passengers-
that it uses in its budgeting and performance reports. The company publishes a schedule of day
crulses 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: For example, vessel operating costs should be $6,100 per month plus $471.00 per
cruise plus $3,40 per passenger. The company's sales should average $31,00 per passenger. In
July, the company provided 50 crulses for a total of 3,200 passengers. Required: Prepare the
company's flexible budget for Jaly.

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Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost.pdf

  • 1. Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5] 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 crulses and the number of passengers- that it uses in its budgeting and performance reports. The company publishes a schedule of day crulses 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: For example, vessel operating costs should be $6,100 per month plus $471.00 per cruise plus $3,40 per passenger. The company's sales should average $31,00 per passenger. In July, the company provided 50 crulses for a total of 3,200 passengers. Required: Prepare the company's flexible budget for Jaly.