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 Flexibleplanning Results Budget Budget Flights (9) 54 - 54 54 52 $16,200 $19,170 $18,460 8,368 1,946 8,406 1,782 8,228 1,716 Revenue ($355.00) Expenses: Wages and salaries ($3,600 + $89.00) Fuel ($33.00) Airport fees ($880 + $32.009) Aircraft depreciation ($10.000) Office expenses ($200 + $1.009) Total expense Net operating income 2,508 2,608 2,544 540 540 520 - 422 254 252 13,784 13,590 13,260 $ 2,416 $ 5,580 $ 5,200 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. Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual Flexible Results Budget 54 Planning Budget 52 Flights 54 $ 16,200 $ 19,1701 $ 18,460 8,228 1,716 2,544 Revenue Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Office expenses Total expense Net operating income 8,368 1,946 2,508 540 4221 13,784 2,416 8,406 1,782 2,608 540 2541 13,590 520 252 13,260 5,200 $ $ 5,580

Answer 1

vulcan flyovers I flexible Budget performance Report for the month ended July 31 Actual Revenue & Flexible Activity Result spending vari Budget variance 54 54 planning Budget 52 flights U $ 19,170 10 F 184 60 178 Revenue Ls 162002 970 Expenses: wagese sal, S8368 38 fuel 1946 164 Diapo dy fees 2508 100 Aircraft dep. 540 O OFFICE EXP 422 1 168 Torcy EXP. 13,784 194 Netop. Income $2416 1 3164 F 8406 U 1782 F 2608 64 None 540 u 254 2 U 13590330 T0 $5580 380 8228 1716 2544 U 520 0 252 U 13260 F 1 $5200 . Revenue a spending variance: Actual result - flexible Budgel. E Activity variance : flexible Budget Planning Budget