Question

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 57 57 55 Flights (9) $16,100 $19,950 $19,250 Revenue ($350.000) Expenses: Wages and salaries ($3,500 + $91.009) Fuel ($30.009) Airport fees ($820 + $33.000) Aircraft depreciation ($8.009) Office expenses ($210 + $1.009) Total expense Net operating income 8,645 8,687 8,505 1,880 1,710 1,650 2,566 2,701 2,635 456 456 440 435 267 265 13,982 13,821 13,495 $ 2,118 $ 6,129 $ 5,755 The company measures its activity in terms of flights Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount

Answer 1

Flexible budget performance report

	Actual results	revenue and spending variance	Flexible budget	Activity variance	Planning budget
Flights	57		57		55
Revenue	16100	3850 U	19950	700 F	19250
Expenses
Wages and salaries	8645	42 F	8687	182 U	8505
Fuel	1880	170 U	1710	60 U	1650
Airport fees	2566	135 F	2701	66 U	2635
Aircraft depreciation	456	0 None	456	16 U	440
Office expense	435	168 U	267	2 U	265
Total expense	13982	161 U	13821	326 U	13495
Net operating income	2118	4011 U	6129	374 F	5755