Question

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Exercise 9-4 Prepare a Flexible Budget Performance Report [LO9-4] 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 Flexible Planning Budget 61 Actual Results Budget Flights (a) 61 59 Revenue ($355.eeq) Expenses: Wages and salaries ($3,400 + $90.00q) Fuel ($33.00) Airport fees ($850 +$32.00q) Aircraft depreciation ($10.00q) office expenses ($240+ $1.00q) Total expense $ 16,200 21,655 20,945 8,850 8,890 2,013 2,802 610 8,710 1,947 2,738 590 2,177 2,697 610 469 299 14,284 $ 1,397 7,039 6,661 301 14,803 14,616 Net operating income 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 "Fi" for favorable, "U" for unfavoreable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Answer 1

Vulcan Flyovers Flexible Budget Performance Report For the Year Ended July 31 Actula Revenue and Fexible Activity Results Spending Varaince Budget Variance 61 61 Planning Budget 59 flights 16200 5455 U 21655 710 F 20945 | | | Revenue Expenese Wages and Salaries Fuel Airport Fees aircraft Depreciation Office Expenses Total Expenses Net operating income 8850 2177| 2697 610 469 14803 1397 40F 164|U 105 F 0 none 168 U 187 U 5642 U 8890 2013| 2802 610 301 14616 7039 180 U 66|U 64 U 20 U 2U 332 U 378 F 8710 1947 2738 590 299 14284 6661